Fri Jan 14 2011 9:07 am EST (GMT -5)

Radar Signal

Currency Pair:GBP/USD
Direction: Short

Trader Comments : Good Morning Traders. Regarding the GBP/USD Radar we have been covering has touched our upside target. To again reiterate or prior post; If price doesn't hold the 1.5700 level; then price should be on it's way to test the 1.5875-1.5900 levels or the .618 Fibonacci retracement level. So price hit the 1.5875 level; yet it is generally not uncommon to see price chase shorts up to the 1.5900 level as there are often weak defended positions around even numbers that are rarely not tested. On the flip side; it is Friday and thus the fear of overnights may scare traders away from holding a position over the weekend and thus scaring small traders out of there shorts may not be as advantageous today. It is really common to see great setups take all week to develop to only scare people out of there positions on Friday. Risk management is more critical for weekend trades as the gap on the opening on Sunday may not trigger your stop order. Only position type trades with considerably large stops should be considered for weekend trades.

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