Thread: Discuss the GBP/USD with a DailyFX Analyst

GBP/USD May 22 - 2012


It’s today more obvious what levels are interesting for traders and this will hopefully make today’s price action easier to understand.

We can clearly see that price is trading higher and higher as price creates higher and higher lows. The latest low is 1.2780 and as long as we trade above this low price can easily reach 1.2850. In case of breakdown below 1.2780 we will first target yesterday's low which is 1.2720 but as we are in an overall down trend we might slip with further 20 pips and reach 1.27 which is also today's S2 level of the pivot point indicator.


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GBP/USD 60 min chart


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Bearish daily candle forming on gbpusd. We'll see if it finishes that way. I believe gbpusd is starting its move down to the 32 lunar month #4 low due about May 24.

Alejandro, looks like the text is for EURUSD :-)

We're ready for further losses on GBP

Attachment 128672

Attachment 128690



dx appraoches yesterdays drop zone, established negative downtrendline confluence, upper cap around 81.63

Originally Posted by root-minus

Attachment 128690



dx appraoches yesterdays drop zone, established negative downtrendline confluence, upper cap around 81.63

Attachment 128706


opened buy, wedge at low


RR 1:1

Originally Posted by Howdyy

Bearish daily candle forming on gbpusd. We'll see if it finishes that way. I believe gbpusd is starting its move down to the 32 lunar month #4 low due about May 24.

Hi Howddy,

In Daily we had a doji (indecision), for the moment im long 5775 (stop 35 pips) TP 5880 and 5940.

Daily FX Speculative Index For 5/22/2012

Retail Traders continue to to be short dollar and yen.

Happy Pipping!

Greg

SSI Details:
GBPUSD– The SSI ratio widened to 2.97 from 1.74 amid an 11.0% drop in open interest. Indeed, retail bears took advantage of the bearish reaction to the U.K. Consumer Price report as the slower rate of inflation spurred expectations for additional monetary support, but the Bank of England Minutes may reveal another 8-1 split amid the stickiness in underlying price growth. In turn, we should see the MPC carry its wait-and-see approach into the second-half of the year, and the central bank may find it increasingly difficult to push through more quantitative easing as the core rate of inflation continues to hold above the 2% target.

The ratio of long to short positions in the GBPUSD stands at 2.97 as nearly 75% of traders are long. Yesterday, the ratio was at 1.74 as 64% of open positions were long. In detail, long positions are 4.8% higher than yesterday and 31.8% stronger since last week. Short positions are 38.6% lower than yesterday and 24.5% weaker since last week. Open interest is 11.0% weaker than yesterday and 2.3% below its monthly average. The SSI is a contrarian indicator and signals more GBPUSD losses.

Originally Posted by root-minus

Attachment 128706


opened buy, wedge at low


RR 1:1

failled, tg missed 2 points, entries stopped at breakeven

re entry, adjusted scalp tg


Attachment 128720

Originally Posted by Bart3s

Alejandro, looks like the text is for EURUSD :-)

Sorry about that.

Originally Posted by root-minus

failled, tg missed 2 points, entries stopped at breakeven

re entry, adjusted scalp tg


Attachment 128720

Attachment 128723



secured early, quasi level

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Originally Posted by root-minus

Attachment 128723



secured early, quasi level

target achieved

GBP/USD Breaking Out: 1.5850 Target. However, if cable revisits the 1.5740 area shorting may be a better tactic

GBP/USD is correcting part of today's losses - we can trade a bit higher and reach 50% and beyond as we got a bit stronger US Home sales - Here are some interesting levels to pay attention to.