GBPUSD 12-22-06

12-22-06

GBPUSD

There was a long breakout trade at 1.9650 on Wednesday afternoon, and a short trade triggered in the GBPUSD at 1.9697 yesterday morning. The first target on the long was at 1.9697 to reverse to a short. The first target of 1.9650 on the short trade, and the second target of 1.9600 were reached and the trade was closed at 1.9570. The GBPUSD has formed an area of breakout support at 1.9620 this morning and is ready to move back toward the top of the range. You can enter a long trade at 1.9632 with a first target of 1.9697 to exit and go flat. That area of supply should cause a sell off again, but this time I will only enter a short trade with a sell stop at 1.9696 if the GBPUSD trades up to 1.9710 before reversing lower. I will exit at the first target of 1.9634. That 1.9634 area should produce a bounce the first time it is tested if you feel like trading all day today.