GBP/USD Outlook For 2011 and Swing Trading Setup |
Hello guys,
Happy New Year 2011! May this year you all got more prosperous in trading or in other activities. It is great to have you here, for those who are new to my blog, I welcome you to come here often as I will make continuous updates on daily markets outlook for each pair and also for those of you who have been with me since last year, thank you for your support to my blog, may this year I am able to present you with more quality updates on daily trades I will be doing.
So my first post in 2011 will be on my outlook for the GBPUSD pair through out the year. For position traders this year might not the right moment for you to trade the GBPUSD because the setup simply not for you. While for intraday or swing traders, you might see some chances from the support resistances areas that will be notice as important points in this year trade.
Ok let’s begin, shall we?
After three days of holidays, I come home last night and turning on my computer to see if there is any setup that might be good for this year trading. I’ve notice in the monthly chart on the GBPUSD pair; I see some interesting pattern there; that is the triangle pattern in a down trend. This give us indication of possible continuation of a downtrend might be happening on this chart. Pity it is happening on the monthly chart so if you are a position traders, you also want to check out some important areas of possible resistances to go short but expect a possible bouncing move of price at support resistance since it is currently moving inside the triangle.
The next setup is for swing traders and intra-day traders, There will be some opportunity for you guys because price will be at the resistance in near future to make its retest of the upper channel line. You might want to go short from here with profit target at around support channel line. Since this is the most probable price next movement.
Wait and see for reversal signal from candlestick is what I am going to do in this channel movement. And if price is breaking the channel line to the downside, you will have to wait for another confirmation from price movement to retest the support trend-line that just been breach and go short with possible profit target as I describe at the above.
About the author: Henry Daniels
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