Somewhat choppy trading on Lady Cable this day, so it might have been difficult to nab some pips. One potential play though was to buy off the PDL and aim for the DO. A 25-pip would have sufficed and given you enough breathing space for that bounce play.
The Cable selloff continued as the pound recorded its worst performance of the week! Talk about ending on a low note! The pair finished over 100 pips lower because of weak U.K. retail sales data!
Would have been a little tough to find an entry point for a Cable short, but if you were confident that bearish divergence would play out, then you could have nabbed some decent pips late in the New York session.
GBP/USD looked as though it was gonna end the day on a high note, but a dovish speech from BOE Governor Mervyn King sent it back down at the very last minute. What a buzzer beater!
Those green lines were MONEY yesterday! If you had just set simple buy / sell orders at the PDL / PDH, you would have made some decent cash!
Selling at 1.5850 wouldâve given us the best bang for our buck, especially since a divergence gave us an early signal to short. 1.5850 held like a boss and we couldâve used a 30-pip stop to bag a 2:1 winner if we had closed the trade at the end of the New York sesh.
After the U.K. GDP report came out (and showed a horrific figure), GBP/USD sold off sharply and retested the previous day low (PDH). But not long after, it was able to recover and eventually returned to trade above the day open.
The bears were at it again as they took an early lead and forced GBP/USD to gap down over the weekend. The pair then continued heading lower, finding resistance at the previous week low (PWL) before it broke below the 1.5700 handle.
The bulls were in control this day, as the helped GBP/USD rise steadily throughout the day. The weekly open price proved to be too tough to handle though, as price action couldnât make any new highs above it!
It wouldâve taken some guts, but buying the fakeout below the previous week low wouldâve paid off! It was confirmed by a 3-bar turn and a bullish divergence, and wouldâve led to an almost 2:1 winner if you had used a 30-pip stop and aimed for the 1.5800 handle.
The day open and 1.5800 handle pretty strongly this day, as price failed to make any significant lows below it. A simple buy at 1.5800 with a 25-pip stop and targeting the 1.5850 minor psychological level would have resulted in a smooth 50 pips!
Lots of pips couldâve been made if we had sold at the previous day high. It held as a price ceiling and sent GBP/USD down about 150 pips, thanks to the U.S. NFP report.
The best way to catch the late New York rally would have been to buy on the retest of the Tokyo high around 1.5710. Even if you set a simple profit target at the dayâs high, you could have easily made around 30 pips.
Mad money couldâve been made by selling at the 1.5800 because the pair fell straight towards the 1.5650 area of interest right after the release of the UK services PMI!
Consolidation was the name of the game, baby! GBP/USD barely moved a muscle, as it hung around its open price. Not much to be made on this day, unless youâre the type who likes to scalp!
Once again, tight consolidation in the Tokyo session gave us an opportunity to trade a profitable breakout setup. Just take a look at that 80-pip rally to 1.5750!
It was all about the pound today, baby! Still, it might have been difficult to catch the bullish run, as price action was kinda choppy.
A poor start to the week from the pound, as it spent a good chunk of the day erasing itâs gains from last Friday. We couldâve capitalized on its weakness by selling at the break of the tight consolidation in the Tokyo session. Up to 150 pips couldâve been made, homies!
Talk about a comeback! After dropping 70 pips or so, GBP/USD formed a double bottom, broke the neckline, and ended up just a few pips below its opening price! Best setup of the day though would have been to play that break of the Asian consolidation, where you could have made about 30-40 pips!
It looked as though the pound was going to hold its ground, but it ended up sliding down the charts again! The grim outlook that Mervyn King gave for the U.K. dragged GBP/USD below the previous day low, where it ended the day.
