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Wednesday, March 30, 2011

Trend for 30th of March 2011

Yesterday I talked about gbp/jpy breakout trade upwards which was triggered by fundamental news from Great Britain. Today saw the same thing happening with gbp/usd. Although there was no significant news from the region, gbp/usd broke upwards from its’ most recent channel and it stayed above it most of the time today. It did not go up, but looking at the pattern you can see some bullish momentum present

Firstly, they are double bottom that was formed through 28th and 29th of March, then higher highs which you can clearly see on 15 minute charts. And of course, a breakout about the most recent resistance level that the pair could not go above in a few days’ period. One thing that can signal a possibility of a false breakout is that a pair did not go up much and still fluctuates quite close to a breakout level. In that case, if you have an order open you need to move your stop closer to the price in order to limit your loss. However, the pair can continue going up tomorrow. So, the best thing to do is to wait for tomorrow and see what happens then. The first resistance is at 1.6100 level (quite close). 

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