I see potential for a short if price breaks the 1.0990 There are a few requirements that need to be met before I would consider this trade.
The current candle needs to close as indecision, it looks like indecision now, but it has yet to close.
The new daily candle should not push higher than 1.1055 .
This is a test trade. I have never traded GBP/AUD so I am testing this short with a very small position. This short is based on a bounce from resistance. It appears sellers are entering the market at this point. The target is subject to change at any time. As this is a new pair for me I may need to adjust my target several times during the trade.
We could possibly see a bullish reversal if the current GBP/USD daily candle closes like this.
We have indecision forming on top of support. This indicates buyers are entering the market.
It is too early to discuss entries right now, will update if the current candle closes well.
For more analysis visit my blog at www.forex4noobs.com
Some updated analysis for Monday the 17th of December 2012
If buyers manage to break this weeks high at 1.3187 we should see a nice rally on EUR/USD.
----Spelling mistake on the red text at the top. I mean't to write 'short reversal'.----
----Please note this is analysis, not a trade...
Possible short reversal from resistance coming up on EUR/USD.
Keep in mind resistance can break. I am not saying I will definitely short. I am saying IF the right set up forms I will consider entering a short.
We have seen several bounces from the 1.3130-1.3150 recently. It is important to note that each bounce has been progressively lower than the last. This...