Tuesday, February 23, 2010

GBP recap - 2.22.10 into 2.23.10 - hourly analysis

I made a good call yesterday, unfortunately I missed out on the "in" opportunity as I didn't wake early enough. I can see why some traders in FX don't sleep too much. But, truthfully, opportunity is constantly around the corner in FX, which is the beauty of it.

My opinion is that the short GBP trend continues, I believe the EUR to be leading this trend as yesterday the EUR was already trading down vs the GBP.

Check out my Buzz (2.22.10) and Chart (2.23.10):

The yellow indicates price consolidation points (a.k.a bollinger band squeezes - thinning channels can also indicate this). Price squeezes typically lead to directional moves to the up or down side. I fore-casted correction yesterday saying resistance would be met at high 1.55's and would be a good entry for a short.

The orange circle is where prices led to this morning as participants entered the market, pushing prices to the outter 2nd deviation BB. Which in turn led to a great shorting opportunity.

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