Tuesday, June 10, 2008

Scaled limit longs on the GBP/USD

Scaled limit longs set @ 1.9512 (S/L @ 1.938, T/P 1.974) & 1.9465 (S/L 1.938, T/P @ 1.974).

1:2 Risk/Reward w/1.7% account risk

Looking to get long in the GBP/USD range...



I'm starting to like this setup for a range GBP/USD trade.



Daily support at 1.95 or a little below (rising trendline).



Hard support on 1.945 & 1.94. A break and hold below would signal a fallout to the downside.



Upper resistance at 1.975 (falling trendline).



Harder resistance on 1.98 & focused on 1.985. A break and hold above would signal a strong up move.



The range still looks like it has some life in it. My concerns are on how the fundementals (news) may impact the technical setup. We have important news coming for both the GBP & the USD.



Daily below, showing the overall triangle & support/resistance levels...













Below is the hourly close-up...