29 October 2009

GBP/USD : Daily Flag

  • Departure from usual longer term charts to look at interesting pattern on daily cable chart.
  • Post surprise weak GDP => sharp decline on 23Oct09. Since then 3 sessions of consolidation between 1.6249 and 1.6466.
  • Last 1.6388.
  • Flag pole = 1.6693 - 1.6298 = appx 4 big figures.
  • Today's low = 1.6284 = break point for flag.
  • Sell stop-in below 1.6284 break for flag objective at 1.5889.
  • Addendum 8:24 am : Give up on idea if this does not perform in the next 2 or 3 sessions.

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