GBPUSD Weekly Pivot Trade

Posted on Tuesday, January 19th, 2010 at 3:59 pm.

In today forex market GBPUSD has broken upward too the first Weekly resistance level and based on the candle stick formations price is going to intend to work it’s way back to the Weekly pivot point which is the price of 1.6249. The reason why i think it will go to that price is that it has a 80% chance of going back to that price and it hasn’t touched it this week and looking at the 4hr chart you can see price is showing a reversal. This is a good short oppurtunity because looking at the fundamental side of things you can see the Pound ecomony is weaking. So if price closes 1.6331 i’ll look to go short to the Weekly Pivot Point. If price closes above 1.6415 then i will go long and trade to the next resistance level or the 4th fib level on the day chart.