GBP/USD retrace

On Friday, May 7th, I wrote, “If it doesn’t resume in the direction of the 1hr to take out 1.4401, then it could retrace all the way back to 1.5117″. As of this writing, the GBP/USD has retraced to 1.5052 which is 65 pips away from the price I forecasted Friday. Therefore, from the lowest price it fell to Friday (1.4475) to the level it has retraced to yesterday (1.5052), it moved 577 PIPs just in the retracement alone! What a nice movement this is! Since I saw the short-term breaking, I temporarily took profit to wait for a retracement. I have entered several short positions around the area I forecasted Friday. Some of these were also limit sells at target areas of resistance as the GBP/USD moved up.

The GBP/USD will continue to move down and form a new low below 1.4475. For those who took my advice and either a) stayed in short and/or b) entered other short positions around 1.5052, you will enjoy another 600+ PIP movement downward soon. Even though the GBP/USD will move further down below 1.4475, it could temporarily go back up to the 1.5052 area to even 1.5123, which would be 71 PIPs on the other side of my forecasted level from Friday. If it does temporarily move to that area again within the next 24 hours, enter a good limit sell position and manage your risk appropriately. However, if this current short-term movement holds, as of this writing, then the 1hr movement will continue and move further down below 1.4475.

Regardless, the GBP/USD will move below 1.4475 within the next couple of days. It’s just a matter of how quickly it will happen.

Happy trading!
LattePIPs

GBP/USD Update

Alright! Based upon the forecasts I gave everyone about 3 weeks ago on the GBP/USD, HOPEFULLY you took my trade recommendation and shorted the GBP/USD! Personally, I’ve made a little over 1000 PIPs on 1LOT on the GBP/USD within the past week. (This did include entering into another position as the GBP/USD fell, but I never entered 2 LOTs taking a single position.) As usual, I will post my monthly account results at the end of May.

So…whether you did or did not take my trade recommendation, you can still take profit. This GBP/USD move is at the beginning of its longer move. Therefore, the questions you may be asking yourself is:

1. Self, now that I’ve shorted the GBP/USD, how long do I hold the position? Should I exit to capture what profit I have? Do I move a stop loss down in case it goes against me? etc.
2. Self, I didn’t take LattePIPs’ recommendations, but want to take advantage of this move. Where do I get in and still mitigate my risk.

Well, here is some technical analysis of what I am seeing. I will try to update this to keep the analysis up with the current GBP/USD movement to provide potential profit targets and trade entrances.

Short-term:

1. The 15min has fully retraced to the resistance level of 1.4769. In fact, it has gone up to 1.4823. Therefore, it is ready to resume the direction of the 1hr. What I would like to see is the GBP/USD take out the large support level of 1.4401. This needs to happen!

Longer-term:

If it doesn’t resume in the direction of the 1hr to take out 1.4401, then it could retrace all the way back to 1.5117, which I’m not really keen on that happening. The 30min seems to be holding in tact; therefore, hopefully, we’ll see our downtrend resume and the 1.4401 taken out.

Therefore…if you’re currently in your GBP/USD short trade, I recommend staying in.

-LattePIPs

GBP/USD Update – Good News!

As I posted just 12 hours ago, I’ve been a little disappointed with the GBP/USD’s lack of strength as it has been moving down.

Last night, my trading system issued an alert of a possible move up on the GBP/USD. BUT last night while we were dreaming of the GBP/USD making further advances DOWN, the GBP/USD did indeed take out another level of support at 1.5043 which changes that signal. Therefore, right now, the GBP/USD might make a temporary move back to 1.5124 (right now, the GBP/USD is at 1.5040), so we are good for our immediate short positions on the GBP/USD.

Happy trading!

GBP/USD – Disappointing News Temporarily

Alright…  I’ve been posting for the past month that the GBP/USD is about to begin going further down…and it has…and will…but the speed it’s moving at is just ridiculous.

I thought the GBP/USD would be moving faster than this…and I’m disappointed. With the EUR/USD making all of its moves, I figured the GBP/USD would at least be trying to keep up. Ok, just kidding a bit, but still. The GBP is putting up a good fight with the USD right now. The GBP just doesn’t want to go down. It will in good time, but the British just don’t want to give in yet. SO…I believe the GBP/USD will move up to the range from 1.5186 to 1.5278. I really wish I had a more precise target than than, but I don’t. I’m leaning more toward the 1.5278 area, but you never know. I mean…hey, the GBP/USD could just keep going down, but from what I’m seeing on my strategy, I don’t believe it’s going to do that over the next 24-48 hours.

Therefore, I recommend a limit sell within the range from 1.5186 to 1.5278 over the next 24 to 48 hours…but leaning more toward the 1.5278 area. Hopefully, this will be a quick climb and then it will all be over and we can begin selling again.

Disappointing GBP/USD