Again, GBP/USD was a snoozefest in the first half of the day, but once London traders joined the party, things got moving! They took the pair up to 1.6150, then had it retrace its footsteps to retest the Tokyo high, only to lift the pair back up and post a new intraday high right before the day came to an end.
The 1.6150 handle held like a boss, and shorting at that level wouldâve actually given us a pretty penny. We couldâve bagged a solid 50-pip drop to the 1.6100 handle, and we wouldnât have even had to risk much since price never went more than 10 pips above 1.6150!
Another solid day trading opportunity materialized, this time at the daily open (DO). It held as support all day, and launched the pair off to a 50-pip rally above the previous day high!
The day open held pretty nicely during the Tokyo session. If you had a long bias, you could have bought just above the DO and held until a test of the 1.6200 handle for a good 40 pips or so!
We couldâve made some mad money by going long at the daily open (DO). A 20-pip stop wouldâve been all we needed to bag a potential 2:1 winner with our profit target set at 1.6250.
Rock solid, baby! Iâm talking about that 1.6300 handle of course! You could have made some decent pips had you placed a short order at the major psychological handle!
Check out that choppy action on GBP/USD! It made it hard to make pips off this pair. Seems like the only thing we couldâve done with it was to scalp off support levels.
Only play I see on this day was to go short on the break of that consolidation during the London session!
Lots of action to start 2013! We saw a nice little rally that was snuffed out at 1.6350 early in the day. From there, we couldâve established a short position to ride the pair all the way back down to the week open (WO)/ day open (DO).
If youâre comfortable trading breakouts, this could have been a day of profit for you! Taking a break below the 1.6200 handle and riding that bad boy down could have earned you a smooth 100 pips!
With the U.K. and U.S. unloading tier 1 reports left and right, GBP/USD was all over the place! It started off above 1.6100, dipped down low to almost touch 1.6000, but it eventually rose back up to end the week above 1.6050.
No real setup to take here, unless you spotted that bullish divergence that formed at the days lows. If you were courageous enough to take that as a sign to buy, you could have easily pocketed 90 pips or so!
Iâm hoping it will rebound as I didnât take profit at +65 last night 
The previous day high (PDH) and daily open (DO) zone was a real area of interest. Shorting at this level after a bearish divergence had formed wouldâve let us catch a sweet little drop to the 1.6050 handle.
Another example of why you should think of support and resistance as zones and not just hard level! Price stopped just below the weekly open before shooting down to retest the 1.6000 handle! Could have been a smooth 70 pips or so!
Support at the previous week low held like a boss and kept GBP/USD sellers at bay. We actually had a few chances to buy at this level, which wouldâve allowed us to catch a 150-pip rally. Money!
The PDH held like a boss, as price bounced off the green line twice! If you caught the second test and aimed for the dayâs lows, you could have made a clean 50 pips!
Resistance at 1.6150, support at 1.6050! We had a chance at winning a 100-pip trade if we had sold at 1.6150 when a bearish divergence had formed in the Tokyo session. A 30-pip stop (set just above the PWH/PDH) wouldâve yielded a winner with a return on risk just above 3:1!
The Asian high held nicely and you could have easily scalped off it for at least 20 pips at a time! Assuming you went with a 20-pip stop as well, there were at least three opportunities to play that setup!
This is an example of where the Fib tool can be useful! If we had thrown up some Fibs connecting the Asian highs and lows, Iâm sure one of the levels would have lined up closely with the 1.6050 minor psychological level!
