Tuesday, January 13, 2015
New Signal GBP/USD
*Signal Updated: The Global Currency Scalper has cancelled its open order on GBP/USD as retail sales were being announced at 8:30 EST. We do not want to get caught in a brief economic number move which may quickly fade. The Global Currency Scalper will move back into cash and proceed with its currency analysis.
As of 01/13/2015 @ 11:16 EST:
We have identified GBP/USD as a possible long trade. Although this pair is in an obvious long-term downtrend we may have experienced a rejection low and are willing to take a long trade with a relatively tight stop loss. The low put in place on January 8, 2015 of 1.50330 looks as if it may be getting support from an area back in March and May of 2013, please see the weekly chart below. On the chart above you will also notice the short-term trend line in red has been broken to the upside and is acting as support which may be another indication buyers are flirting with this pair. One last important note is this Wednesday morning's speech by the Bank of England's Mark Carney, odds are his speech will be geared to strengthening his currency which may also attract buyers.
The Global Currency Scalper will be taking a long position if the GBP/USD breaks 1.52260 with a target of the figure at 1.53000, last weeks high of 1.53350 and finally the figure of 1.54000. We will set our stop on a break of the red short-term trend line currently at 1.50630, if this level is breached prior to initiating a position we will turn neutral on this pair and further analysis will be needed.