EUR/GBP: Technical Analysis 17-18/05/10

EUR/GBP: Technical Analysis 17-18/05/10

I’m looking at this one fairly late on Monday night because

  • a) to find a decent pair for my article on Tuesday and
  • b) I didn’t do very well today (Monday) with +44 pips scalped then lost 40 pips by holding onto an exotic pair (it’s over now, so I won’t even bother telling you which pair it was lol). So up by +4 pips for the day.

Looking through the Oanda News I saw this pair which, as mentioned below, is heralded for a long position with a target of 0.8745, a total of 170 pips. I entered at 0.8557 which, if it goes the distance (and at the time of writing being 22:00 BST it’s looking strong) will set me nicely not only for the day, but for the week to date (my goal being +60 pips a day). Looking at the 15 Minute and 5 Minute charts with an Ichimoku overlay shows the possibility of an upwardly mobile trend here.

Fifteen Minute Chart

Five Minute Chart

OANDA NEWS AS OF 00:15 BST (18th May 2010)

Long is in play after last week”s massive surge in vol and as daily MACD is about to turn back up for the first time since its Mar 18 sell signal. Stop is below the current and last two sessions lows in the 0.8495 vicinity. Oversold weekly studies have begun to base out as well. Need a daily close above the falling 21-day MA (0.8618) to strengthen the bullish reversal

POSITION LONG

PRICE 0.8575

TARGET 0.8745

STOP 0.8495

EUR/GBP (All times, unless otherwise stated, are in EST)
The most active days are Weds (20% TM) and Thurs (23% TM)
68% of trends occur between 01:00 and 13:00.
52% TM begins between 05:00 and 13:00

A profitable strategy is useless without discipline. Many traders end up losing money because they fail to make trades that meet their own criteria.

“Plan the trade and trade the plan” …. Success is impossible without discipline

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  • YankeeClipper1

    Hi shallom… thanks for stopping by and reading my articles 🙂
    TM, in this instance, simply means Trend Movement

    Take care… Mike G

  • shallom

    thank u
    pls what do u mean by TM

  • rob harvey

    thx.