Wednesday, June 24, 2009

6-24-09 GBP/USD TRADE








Today with FOMC on tap and other reports coming out, it was a little sketchy trading but as the old saying goes, "trade what you see" was in the back of my mind when I took this trade. In my mind it's all about trading at the right level at the right time and managing a trade properly. As I watched this pair, I saw the flows on the day seemed to be changing. We closed below last weeks high with a bearish engulfing candle. I scaled down to a 5 minute to see the last TSR areas and found two. The minor one at 1.6529 had more confluence with the retest of a broken trend line and 50% retrace of the last move down, so I liked that area more. With this pair especially, you can get a "bleed through" to a minor level or last dealing range. The trade set up, I took it and it paid. As of this writing it was trading at 1.6508. Two trades like this per day will do nicely. :-)