Directly from Vladimir Ribakov's Live Trading Room
We might have a possible bullsih call here for the GBPUSD. If we look to the Daily chart we have a strong support area that use to be resistance around 1.5652. Now going down to the H4 chart we can see that we that price is possibly building the 5th wave down towards our support area. Right now we have divergence on the MACD histogram in the form of double bottom. the game plan will be to wait for pice to reach 1.5652 and to have either continuing divergence or regular divergence on the MACD histogram. If we get this price action than we want to see a clear stop in the form of a Bullsih candle stick pattern ie Harami, Engulfing, Hammer etc and if we get a Bullish pattern that will be our sign to buy and we will be aiming the 20MA on the H4 charts.
GBPUSD trade setup for March 07, 2012
GBP/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3