Monday, January 10, 2011

Pounded the GBP/USD

We called the GBP/USD trade on the 29th expecting it to hit in 2-3 days but we hit in 1 day, a little quicker than expected but who can complain.

The pair has consolidated now and a break down below 1.5440 will see the pair test 1.5350 for a scalp. A break below 1.5350 will likely see the pair fall 800 pips or more. I, however, am expecting to see price break below 1.5440 and give a head fake to the 1.5350 followed by a bounce and a reversal.