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Post of the Day: GBP/USD

Monday, 01 December 2008 10:10:20 GMT

Written by Richard Krivo, Power Course Instructor

Student’s Question:

Here is my chart. I have chosen the GBP/USD for 1hr 10 day and marked out a pivot/support point.

chart 11 30 08 A


Power Course Instructor’s Response:

You have done a nice job on the 1 hour chart plotting this trade.

My concern is, that while pips can be made, anytime we go against the trend exhibited on the Daily chart we increase our risk. Being of the mind to reduce our risk as much as possible, we would be on the lookout for short positions on this GBPUSD pair based on the Daily chart. In a downtrend as steep as this one, a trader does not know when that bullish retracement is going to come to a halt.

See the Daily chart on the pair posted below...

chart 11 30 08 B

 

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