FibMaster FOREX intra-day perspective GBP/USD

[FibMaster]

Since my last update of January 29th, Cable has continued it's slide into shorting territory.

As long as GBP continues to put in lower swing highs and lower swing lows, we're free to short Cable on lower time-frames.

There is one higher swing that I would consider shorting. A rally to 197.00 would be very short-able.

The hourly chart attached shows the action, and also some key resistance at about 197.00 (see attached).

That resistance is based on the current swing low of 195.50 . If that low is taken out, the resistance level will move down.

We can't know whether Cable will rally to 197.00 soon, but if it does, and if it resists there, it will be a great place for shorting! That is a high-probability trade setup with SK resistance and a good down-trend. A stop-loss would be situated above the resistance, and above the 197.00 area after entry. I don't recommend shorting above there.

Note the prior swing high at 197.90 (Feb 4th). You definitely don't want to carry any short trades if the chart gets above that! The picture starts favoring bulls up there with the exception of resistance up at the swing highs of January..

[johntsai]

Hi Neal,

How do you identify the swing high?

In your cable chart, the first swing high, 19926, isnt looks like it.

Or am I reading the wrong way as you did?

John Tsai

[FibMaster]

As long as GBP continues to put in lower swing highs and lower swing lows, we're free to short Cable on lower time-frames.


Update February 7th! ----- As I said, we short Cable on lower time-frames. Lots of happy profits out there in Cable-land! My hope is that you're loading them into your trading account.

John, good question. I'll answer your question later, just busy right now. I'm preparing for the seminar this weekend (http://www.fibmarkets.com/pro_seminars/index.html) <<<-- Click for details!

[Lifesong]

Hi Neal,

How do you identify the swing high?

In your cable chart, the first swing high, 19926, isnt looks like it.

Or am I reading the wrong way as you did?

John Tsai

Hi John

At the time when Neal made the call it was SK resistance on the hourly chart and if cable would have retraced at the time, it would most likely form the swing high before the next down move. But as you know it never did and unfortunately the expected trade opportunity didn't materialise. For the sake of learning you can do the analysis Neal made at the time by doing your Fib retracements on hourly chart from swing highs @ 1.9957 and 1.9758 to the low of 1.9552. :eek:In doing this you would establish the SK @ 1.9697 to 1.9707 that Neal referred to.:confused:

For the folks not knowing how to do this - do yourself a favour and buy Neal's Fib study course and you'll never look back!!! :D