Trading Forex – Cable Upside?

Posted on 05. Oct, 2011 by in Forex Signals, How To, Random Noise

As mentioned in yesterday’s post, I think we are likely to get a pullback on EUR/USD before we see continuation to the downside. One reason why this might be the place, is partially due to the USD index coming close to the 200 EMA which tends to hold as a strong level of support and resistance. Now if the USD index will bounce on this level, USD crosses are likely to be affected from this.

Trading Forex – Bias

My bias on Cable is pretty much the same as on EUR/USD. I think we are likely to see further downside. However, before we continue lower I think some upside might be in the cards. Now as with EUR/USD, I would prefer to wait for a pullback and trade the pair to the downside, but as we do have a bit more clear setup here on Cable, there could be a good chance to play this as a long trade for some 100 pips.

Trading Forex – Technical View

Now taking a look at GBP/USD on the 4-hour chart, we have clearly created a double bottom (which is only true if we break the high in-between the two low levels, but it clearly looks like that could be the case). Because of this, taking a long around current level might not be such a bad idea.

The pair currently trades around the 1.5440 level and I think we easily could see another 100 pips to the upside.

Trading Forex – Ideas

With the above mentioned aspects in mind, I am open for both a long and a short trade on Cable.

Right now I would not mind taking a long trade on Cable with a stop loss below the double bottom low at 1.5320. I would move stop loss to break even at 1.5540 for just around 100 pips (and probably take partial profits) and take final profit at 1.5640 for 200 pips of profit. At that level, a short trade could be in the cards with a stop loss above recent highs at 1.5720ish and look to TP above the double bottom low. Anyhow, I would probably prefer to look for a short trade on EUR/USD.

Related posts:

  1. Trading Forex – Cable Below Key Level
  2. Trading Forex – EUR/USD – A Perfect Play and Upside
  3. Trading Forex – Cable Up for Further Downside
  4. Trading Forex – A bit of Possible Upside
  5. Cable – The Week Ahead

Tags: , ,

Are you ready to become a profitable Forex Trader? First of all, you need to be certain Key Elements to be in place, such as your Psychological Mindset, a good Broker and Trading Platform, Capital, etc.

Here you can read more about how to get started in Forex Trading.

Once you have gone through the Essential Elements, it's time to spice up your trading. You can read my reviews about other services and obviously don't forget to sign up for my Free Signals.

Also, don't forget to read about these cool tools which can take your trading to the next level... More Tools and Resources

No comments.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>