GBPUSD Analysis - 29 Jun 2013

GBPUSD Analysis on Daily - 29Jun2013

I like EURUSD because it follows many famous rules written about trading currency pairs very nicely and sometimes to the pip. If we look at this chart, on the correction wave, the first minor bounce happened off of the 38.2% retracement level, then it went up further to touch the 50% retracement level to complete wave A. Same beauty almost happened again when wave C completed just short of 62% retracement level. This actually confirms that a good bearish move is in place and lots of those people couldn't even allow a tag of the 62% level. This also means that the move lower from here should be a fast one as we have seen it so far. It would be interesting to see how it unfolds next week. However, keep in mind that there should be a good support around 1.51 area resulting from the trendline from march lows. That should be a good area to take some profit if one wants to be cautious. However, the bigger picture move should take it down below the 1.50 area. Let's see how it pans out. As you can see I'm currently holding a short on this pair which is 184pips in the money. Right now I'm going to hold it with stops close to breakeven as I definitely see a good profit potential on this trade.