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XavierAlexander
Oct 14, 2015 11:43 AM

GBPUSD - CABLE SHORT ON DAILY - HIGH PROBABILITY SETUP £$ Short

British Pound/U.S. DollarFXCM

Description

Nice and simple clean analysis on GBPUSD daily chart.

Diagonal rays have been respected for majority of the year, a breach of these rays suggest break out

The proportional clones give me an idea of the size of potential move.

Fibonacci retrace level based on distinctive High/low points from beginning of the summer.

Potential 61.8% reversal occurring, for the last 4 day candles price has continuously tested and failed to break this level, suggesting it will fall short.

Commodity channel index heading north but at a pivotal point.

Will seek entry on small TF's as usual.

Trailing stop initiated after visual short target complete, completion of proportional clone and back to 0% of fibonacci retracement level would equate to a "perfect" trade.

Good luck and happy trading :)
Comments
IvanLabrie
That was a very strong engulfing candle. Dangerous to fade it.
XavierAlexander
Very strong indeed! Today's lesson. Don't publish before high impact news! aha - I still have a bearish bias on cable however today has been very very strong
IvanLabrie
No, don't worry.
We have to try, specially before data comes out! The big moves usually happen when data is out, and thus the big wins when we get it right!
IvanLabrie
As for cable, I agree on bearish bias, I'm long EURGBP from the lows.
InvestorR
Agree with the long EG, staying out of USD till it gets back to the norm
IvanLabrie
Indeed, USD is taking a beating for now.
XavierAlexander
I think dollar is finally showing its true colours :)
XavierAlexander
Great point Ivan, thank you for your wise words, long EG seems very strong right now I wish you the best of luck!
IvanLabrie
Thanks! You too.
The moves we're seeing are pretty critical, start of a new quarter, lots of fundamental data clearing things up.
We might have some excellent trades ahead.
XavierAlexander
I have been trying to exaggerate how important start of fourth quarter would be! majority of major pairs are highly overdue directional trends. Can't wait to see what we both can pull from it :)
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