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Using Fibonacci ratios to manage your trades efficiently
by Sunil Mangwani
November 23, 10:00 GMT
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Howdy Folks,
We had a great webinar earlier today, I hope you are able to attend next week. We are do them every Monday, I’ll post the link on Friday. GBP/USD was stopped short at supply and sold off like a politician running from the truth on Friday. The currency looks like it is on its way to test breakout resistance as support near $1.61. Nothing specific to zero in on today, GBP/USD is running in the middle of the range, perhaps something better will appear tomorrow.
Howdy Folks,
October has not been kind with my schedule and webinars! Last week I had some internet issues before the webinar and this week I have a schedule conflict so there will be no webinar today. We will resume on the 26th of October.
Thanks,
Ryan
Howdy Folks,
There were no decent bargain day opportunities this week however patience with the GBP/USD paid off late in the week. On Monday I posted a chart which marked a range between $1.61 and $1.58. Given recent price action my bias was to short the top of this channel near $1.61 and that is exactly what I did. I suspected nothing dramatic would happen on GBP/USD until after the BoE rate statement Thursday morning. The immediate result was a GBP rally but I didn’t believe it had any teeth because the BoE didn’t throw any surprises as the RBA did earlier in this week. I setup a classic support and resistance trade using broken support and the round number $1.6100. I sold GBP/USD at $1.6110 using entry orders. My profit target was the 61.8% ratio and I took 190 pips off this morning. There was more in this trade but a profit target is a profit target.
I hope you had a great trading week!
Don’t forget Monday’s webinar! You can register at this link by clicking on “Register for this Session”
http://www.fxstreet.com/live/sessions/session.aspx?id=9f2cb6df-bd6e-465e-9b5f-9763e8c3a86b
Have a great weekend!
Ryan
Howdy Folks,
Another great webinar this afternoon! If you missed it the next one is Monday at 19:00 GMT as usual. GBP/USD is rather boring to talk about tonight. The market appears to be waiting on data from the manufacturing sector and Halifax’s HPI report tomorrow morning. The pair continues to range between $1.6100 and $1.5800 with $1.6000 smack in the middle. With no bargain day and little price action there isn’t much to do with this pair today. Range traders will likley continue playing both sides until we finally get some direction out of this pair. Nothing for me to do right now except let time pass and see what happens. Thinking out loud for a momement, it might be interesting to see a bargain day setup near the bottom of this range. Don’t forget the BoE releases their rate statement Thursday morning.
Best of luck,
Ryan
IMPORTANT NOTICE: These comments are for information purposes only. My opinions or other information contained in this post do not constitute investment advice. It should not be understood as a direct recommendation to buy or sell any currency contract or other investment vehicle. Forex trading involves substantial risk of loss and is not suitable for all investors.
owdy Folks,
I have finally finished my book! I’m going to take advantage of my new free time and get back to blogging! I have really enjoyed our webinar chats and I’m looking forward to blogging here regularly again. Today being Sunday I’d like to share some planning thoughts on GBP/USD before the week gets started. Last week the story was consolidation after the breakout following the Fed’s statement. $1.6100 held resistance while $1.5800 held support throughout the week. If we measure Fibonacci extensions using the high / low preceding the breakout we find the market turned at the 50% ratio and reached the correlated 150% extension last week. This leads me to suspect some upside potential for GBP/USD over the short term assuming the selling is over with for now. The BoE has a rate statement scheduled for Thursday. If I had to guess, I’d say the pair is bid up early in the week and sent lower later in the week of course I could be totally wrong. If $1.58 falls early it appears the ride down to $1.53 could be swift. The fundamental calendar for dollar is light this week with only ISM, Unemployment and Trade Balance data expected. Regardless of direction, price action will ultimately lead the way.
Monday’s Webinar Link
I’m looking forward to the webinar tomorrow. I did a special webinar last Friday and we had a huge crowd of folks in the room! I hope you can join us tomorrow for our regular chat about support and resistance, “bargain days” and trading around your day job. The webinar starts at 12:00pm Pacific / 19:00 GMT. You can register via this link:
http://www.fxstreet.com/live/sessions/session.aspx?id=5261c7d5-80f6-4f06-9b99-6539c8505cb2
Click on “Register for this Session”.
Best of luck this week, more tomorrow.
Ryan
IMPORTANT NOTICE: These comments are for information purposes only. My opinions or other information contained in this post do not constitute investment advice. It should not be understood as a direct recommendation to buy or sell any currency contract or other investment vehicle. Forex trading involves substantial risk of loss and is not suitable for all investors.