GBPUSD 12-8-06

12-8-06

GBPUSD

The short trade at 1.9722 was not entered yesterday, as the best that the GBPUSD could do was a high of 1.9710 for the day. I would be careful with the NFP report trade because the areas of supply and demand on the chart below are both fresh. In other words, you may enter and have a violent reversal and a large loss if the spike up hits 1.9723 or the spike down hits 1.9572 and you enter in the direction of the spike. I have seen that happen many times. I will pass on trading the GBPUSD for just that reason. Use the areas I have marked off as places to take profits if you do try to trade the NFP report.