Update for: 2011-10-03 - 2011-10-09

Posted on: Sunday, 02 October 2011 11:01


GBPUSD: 1.5579

 Short-Term Trend:  downtrend

Outlook: Last week I said that the short side was favored but the risk/reward ratio was not compelling. Well, the market managed to rally a bit, so the trading conditions have probably improved. But it is still impossible for me to find a low-risk entry for a short position. Maybe if a rally twd 1.5950 deelops, such low risk entry can be found. As for the downside, the minimum downside objective for this move lower is at 1.5000. So, there is enough downside potential.
On the upside, only abv 1.6050/70 negates the immediate bearishness but even in this case I will continue to follow the wave count presented on the chart above.
Strategy: If a rally twd 1.5950 develops, shorts can be favored.

Next Update: Sun, 10/09/2011.


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