Analysis_091509_gbpusd September 15, 2009

Trade Notebook

Date: Tuesday, September 15, 2009

Currency Pair : GBP/USD

Outlook: Bullish

Support: Resistance:

1. 6250, 1.6100 1.6750, 1.7250

Elliott Wave:

The move from early July can be counted as an expanding diagonal. These diagonals move in 3’s and we would currently be in wave C of 5.

Classic:

A base is set at 1.61 and again at 1.63. Price looks to test 1.6750 again. Buying the dips is justified, outlook is bullish with MACD crossing up.

News (EST): 8:30am USD Core CPI m/m

Trading Update:

The trade outlook is bullish. Buy the dips and set targets for 1.66, 1.67, 1.70 etc. Stops should be below recent low around 6250.

If you want to take most advantage of this trade, open multiple positions and close out a position when the target hits, leave other open but move the stops into profit area. Watch your Money Management, don't expose more than 3% of your balance at any trade!

Thank you for reading this update.

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