The image above is the daily chart of the GBPUSD. In class, we discussed how the pair seems to have rolled over and had a lower high and that is where I drew my channel line. I waited until the upper channel line was approached and that was Tuesday, October 21. I then drew my first trendline on the right side of the rise to the upper channel. When the rising trendline was breached on a close below, that was when I was to take a trade. On Wednesday, the pair broke above my channel line and I became dismayed. www.ino.com showed the USD weakening so there was more room to the upside. On Friday, the British GDP was worse than thought. That is where I stepped in to look at my initial entry near the channel line at 1.6490
This is a 1 hour chart of the pair. The current forex program I have does not allow for the trendlines to cross down to the lower time frame. I had to redraw them. Again, the 1.6490 line had resistance a few days ago and was breached to the upside. It then retraced to this level again and this is where is broke above the channel on the daily chart. After some consolidation on Thursday, the bad news came out and the GBPUSD dove. I have the horizontal line drawn near 1.6490 and an uptrend line transected the horizontal line near 1.6490. This big downdraft was good overall, but I was concerned about the large candle on the one hour.
So I boiled down to the 15 minute chart and took my entry at the 1.6490 level. I set my stop loss at 25 pips above my entry.
Target 1.6426. Reached in 2 hours.
The image above is the daily chart of the GBPUSD. In class, we discussed how the pair seems to have rolled over and had a lower high and that is where I drew my channel line. I waited until the upper channel line was approached and that was Tuesday, October 21. I then drew my first trendline on the right side of the rise to the upper channel. When the rising trendline was breached on a close below, that was when I was to take a trade. On Wednesday, the pair broke above my channel line and I became dismayed. www.ino.com showed the USD weakening so there was more room to the upside. On Friday, the British GDP was worse than thought. That is where I stepped in to look at my initial entry near the channel line at 1.6490
This is a 1 hour chart of the pair. The current forex program I have does not allow for the trendlines to cross down to the lower time frame. I had to redraw them. Again, the 1.6490 line had resistance a few days ago and was breached to the upside. It then retraced to this level again and this is where is broke above the channel on the daily chart. After some consolidation on Thursday, the bad news came out and the GBPUSD dove. I have the horizontal line drawn near 1.6490 and an uptrend line transected the horizontal line near 1.6490. This big downdraft was good overall, but I was concerned about the large candle on the one hour.
So I boiled down to the 15 minute chart and took my entry at the 1.6490 level. I set my stop loss at 25 pips above my entry.
Target 1.6426. Reached in 2 hours.
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