Yesterday I offered short opportunity on the GBPUSD which if you took you should still be in. I just want to update on this pair. I do believe that this pair will continue to go down as long as it remains in the channel that is being created on the H4 charts. As long as price remains within this channel this should take us down to the lower boundary of the Bollinger bands as this was our target from yesterdays trade around 1.5580. Now here is a Bullish scenario. If price breaks out above this channel that would be the sign to get out of your short postion and look for a possible Long entry. what I want to see is price retest the channel and hold this level. For extra bullish confirmation I would like to see the RSI indicator cross the 50 level. If this happens, this will be our signal to buy. With final target being 1.5900.
GBPUSD trade setup for February 15, 2012
GBP/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3