New, confirmed GBP/USD target

Alright, we have a new, confirmed GBP/USD target for the next few weeks. Earlier this week, I made a mistake and missed my longer term reversal signal.

So, where are we targeting over the next few weeks? The GBP/USD will move up to the area I discussed last week in this post. Last week, I stated that the GBP/USD will begin to move up targeting the area of 1.4800-1.5000. Getting more specific, we are currently targeting the zone from 1.4780 to 1.5060. I’m leaning more toward the 1.5060 area, but I’ll provide more specifics as the GBP/USD continues to move up.

Just a word of warning, the GBP/USD may still range a bit before it begins its steady climb up. I’ll try to warn you ahead of time to provide the following:

• when I believe the GBP/USD will tire out as it begins its climb (providing strategic exits)
• provide target areas to place limit buys for entrances again as it continues its climb up to the 1.4780 to 1.5060 target zone

Happy trading to capture a “lotta” pips!

LattePIPs

GBP/USD Movement

So, many people are wondering where the GBP/USD is going. At DailyFX, you can read here that they think that the GBP/USD may provide a “short-term corrective bounce back towards 1.4700-1.4900 before bearish trend resumption”. Of course, I have said for a week now that the GBP/USD has potentially found a bottom and is heading toward 1.4800-1.5000.

Of course, when this type of thing occurs, there are very large swings to take advantage of. Earlier, I wrote to look for strategic short positions. I still do not show a signal for a more longer-term movement yet, but a chart below shows the current GBP/USD movement up from May 25th.  So far, I do not have any signals of it breaking to go short; therefore, I would recommend any long positions along the current uptrend line from May 25th.

Current GBP/USD Movement

GBP/USD

Even though the GBP/USD took out 1.4516, my system is not showing the GBP/USD to go LONG for the next month or so. Therefore, look for strategic short positions right now on the GBP/USD. Here  is a snapshot of a current short trade I am currently in. Of course, you’ll notice the level of resistance the GBP/USD kept hitting at 1.4467.

GBP/USD 5-24-2010

No change in news on the GBP/USD

Early in the morning of May 19th, I posted a trade recommendation here of going LONG on the GBP/USD and that the GBP/USD was forming a bottom. It was a 175 PIP trade shown here. You’re probably wondering how I knew that…how after weeks of the GBP/USD just dropping, I dared to take a LONG on the GBP/USD. It’s because there is nowhere else in the world you will find this kind of trading strategy which produces signals like this…period.

So, you might be asking yourself, “Self, where is the GBP/USD going now?” Well, the GBP/USD is currently still moving up; however, that could most definitely change. The GBP/USD is at a point where it could go either way.

Here are some things to consider:

• If you exited your short positions and took my long position posted a couple of days ago, then move your stops up so that if it breaks to go down, then you have captured profit.
• If you are still in your short positions, be sure to place your stops appropriately.

Here are a few things regarding technical analysis of the recent GBP/USD movement:

• It has retraced to the 1.4429 area and is potentially ready to resume its downtrend. That’s why, if you’ve noticed, the RSI has posted several weakened points as the 1hr. has continued to post higher highs.
• The GBP/USD has failed to take out 1.4516. This is of utmost importance if the GBP/USD is going to keep moving up. We’ll wait and see what my strategy provides as signals, but personally, if the GBP/USD doesn’t take out 1.4516, I don’t see how it’s going to continue its move upward. Rather, it would continue its downtrend.

It’s 7:34pm Central time (3:34am GMT). The GBP/USD is at 1.4434. Here’s what I see the GBP/USD doing in the short term:

• Since the GBP/USD failed to take out 1.4496, the GBP/USD should fall to 1.4405.
• When the GBP/USD hits 1.4405, that is another level to go long for the short-term. (This is assuming my strategy doesn’t create any short-term signals to go short when it hits this level.)
• At that point, we’ll see what happens. Once it hits that level, it may continue upward and take out 1.4496, then 1.4516. Otherwise, it may begin its descent again.

I’ll check everything again before I go to sleep and send out a post if anything changes. Otherwise, we’re still looking LONG on the GBP/USD. I’ll also check the GBP/USD status in the morning to see if anything has changed.

Happy trading!

LattePIPs

Hope you took my GBP/USD trade recommendation – 175 PIPs so far today

I posted here about the GBP/USD trade recommendation this morning. It’s been a 175 PIP trade today so far. The GBP/USD is continuing to break. I will  let you know when it is beginning to turn around to head for 1.4800-1.5000 over the next month or so. Here is what my trade recommendation for today has looked like so far:

5-19 trade recommendation - 175 PIPs so far

GBP/USD Update – it’s early, but we may have found a bottom for now

Alright, so assuming you didn’t place temporary exits and entrances where I have recommended over the past few weeks and simply stayed in your trade, then as of this writing, you are positive 1035 or 1135 PIPs. That’s fantastic for around 4 weeks and not checking the trade very often!

Now, this is very, very early, but I believe we have potentially found a bottom for the GBP/USD over the next month or so. If we have, then the GBP/USD will retrace back up to the area of 1.4800-1.5000. (I’m personally leaning more toward the 1.5000 level.)

I saw this change occurring, exited my current sell position at 1.4289, and entered a market long position at 1.4285. I am currently positive 75 PIPs going long in a short-term uptrend right now.

If you’re comfortable with the profit you have made at to this point, I would look at exiting your short-term positions. If you don’t want to exit your short-term positions, then I would at least move your stops to a correct placement.

Once my system issues a longer-term (next month or so) long position, then I will immediately place the post for the trade recommendation. Until then, watch what the GBP/USD is currently doing. If you’re still in short positions, then make sure they are reasonably protected.

Happy trading!

LattePIPs

GBP/USD Update on Movement – So far 800-900 PIPs moved and 1100-1200 PIPs captured from LattePIPs forecast in 3 weeks

Those who took my recommendation on April 19th have so far enjoyed a 800-900 PIP movement. This depends if you entered at the 1.5375 or 1.5475 level which I spoke about almost a month ago.

If you did some more short-term trading like I did, exiting around the 1.4700 level to enter again around the 1.5000 area from my forecast written on May 11th, then you have enjoyed 300 more PIPs making your current total since April 23rd either 1100 PIPs or 1200 PIPs depending on your exits and entrances. For a three week period, that’s not bad at all…ranging from either 300 PIPs/week to 400 PIPs/week depending on your actual entrances and exits compared to my recommended, forecasted GBP/USD movement found here at LattePIPs! That’s the good news. Read further for the better news!

Alright, so you’re probably wondering how far the GBP/USD is going to move down. So…sit back in your seats and strap yourself in, because you probably won’t believe what I’m going to tell you.

Back in October 2007 (when I did not have this blog site up yet), my strategy issued a long-term 3-6yr sell on the GBP/USD! Yes, believe it or not, my strategy issued a sell on the GBP/USD when it was at the very tip top above 2.000 …I just love my strategy…sigh…  OK, so I also know this based upon my strategy…the GBP/USD WILL make a new low below 1.3502, which is 1000 PIPs below what the GBP/USD is currently at. I’ll be providing updates to the GBP/USD movement so you can better mitigate your risk for retracements during the movement down to 1.3502. I have provided a potential projection of what the movement ‘could’ look like based upon a few things:

• Current channel and
• Current cycle of the GBP/USD within the channel

My strategy does not take into account the channel or the cycle; therefore, the GBP/USD is going to get there when it wants; however, based upon my strategy, I do know that:

• The GBP/USD WILL make a low below 1.3502 AND
• This current movement will be the cause of the low below 1.3502 (over the next 4-5 months)

Here’s a snapshot of the current channel the GBP/USD is in:

Current GBP/USD Channel