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01/29/2008 Archived Entry: "FibMaster FOREX update GBP/USD"
The daily chart shows a major down-trend (starting November) that was broken to the upside in January. The 4-hour chart shows a strong rally to an SK resistance level at 198.90 to 199.10 Now the decision is whether to trade this chart long based on the breakout of the long-term down-trend, or short because of the current resistance. Let's look at both options. First the downward shorting option. On the 4-hour chart I've drawn a supporting trend-line that needs to break before we can do any shorting. Shorts will have to be lower time-frames, below 60 minute, and only if the chart puts in consecutive lower swing highs and lower swing lows. Also, there are some SK support levels at 198.50, 198.05, and also a little above 197.00 to 197.25 . Those support levels can be profit targets for intra-day short scalps, and may even be strong enough to support for a decent rally (watch out). If the chart can get below 197, it is even weaker, for more shorting. For the upside possibility, for long trades, GBP/USD needs to rally above 199.00 and put in higher swing lows and swing highs intra-day. Then we can buy dips at Fibonacci levels, as long as the rally continues. With these parameters, we are able to monitor this chart for opportunities in real-time. Comments/suggestions/questions are welcome. Post your own charts, or your own trade suggestions too. We all benefit from the discussion. Discuss this chart on the TraderZine forum click here. (At some future point these update files will be removed due to space restrictions)
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