GBPUSD 12-27-06

12-27-06

GBPUSD

There were no trades triggered in the GBPUSD for the last 3 days. The open of trade on Monday had the GBPUSD trading near 1.9575, and it never traded above 1.9600 for a long trade. The range I was looking for the GBPUSD to trade in was 1.9500 to 1.9644 when I sent the email out on Sunday with 1.9500 being the price I would enter a long trade. The GBPUSD got close to 1.9500 yesterday afternoon with a low of 1.9515, and has since traded back up to a high of 1.9631 today. One of the frustrations of trying to trade a 24 hour market by yourself is missing large moves like this by using limit orders that are never reached. There are two breakout areas where the GBPUSD should bounce on a sell off at 1.9580 and 1.9550. I would buy the pullback to 1.9550 for a continuation move higher. The first target is 1.9600 and the second target is 1.9644. Move the stop to even after the first target and to 1.9591 after the second target is reached.