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Thursday, March 24, 2011

Trend for 24th of March 2011

Today Forex market saw a continuation of a down trend in gbp/usd pair. As you probably remember, the move started yesterday after fundamental news from the bank of England. This caused a break of support which was at 1.6340 level at that time. The pair moved as low as 1.6220 and then started retracing. The first high that it reached was 1.6272. It then revisited the lowest low and formed a range of 1.6220 and 1.6270 levels. Range continued through American, Australian and Asian sessions. 

A sign that a trend might resume itself was given when a pair revisited a resistance at 1.6266 and failed to break it. So, after seeing this you had to be ready to enter a short position in gbp/usd at around 1.6218 level. It was a very good technical set up. There were some disturbances on the way as there was some news due to come out from Great Britain, but as it came market counted it as negative and pound continued going down. So, we are in a short term downtrend in the pair and the next support level is seen at an even number of 1.6100. 

There are many more daily opportunities, but I do not want to discuss all of them in one post. As of now, I just one to take one example a day. Later I will start discussing other financial markets as well. I limit myself to forex for the time being, but precious metals and oil are my favorites and I hope to write a few notes about them from time to time.

Read my previous posts:

Adding to a position in a trend


Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.