After a slow start to the week things are beginning to pick up and a nice win today for TUFXP and a personal trade that I’m feeling satisfied with. For several days now GBPUSD has being trying to pass 1.5200 successfully and each time it’s been rejected heavily without a meaningful close above 1.5200. Whilst previewing today’s markets I read some good articles about future resistance ahead for GU and agreed that 1.5242 would be the next test for GU should it clear 1.5225. It isn’t very often you get two fairly big resistance points within such close proximity but when they arrive, it is quite a powerful thing.

Using my newest, most favourite indicator, it also clearly signalled a reversal was possible right at 1.5230-1.5240 region so with this information I decided to take a small risk of 1% and set a sell limit order at 1.5235 and target 2% gain. GU climaxed at 1.5241 before setting about wiping all of yesterday’s gains off pre BOE release which could either send it below the strong support at 1.5080 or fire it right back up into 1.5200 territory.

TUFXP was eerily quiet for the first 3 and a bit hrs and I was wondering if it had had a malfunction overnight! But it seems it was working for some and not others as a short was signalled at 800AM for at least person in the trading room but didn’t appear for the rest of us. Thankfully a nice looking short arrived at 955AM and triggered just after 1000AM. There was a little debate as to whether it was valid as the rules state finish trading at 1000AM but I am of the school that the signal arrived before the cut-off and the difference of 1 minute is neither here or there and I doubt the forex gods flick a switch come 1000AM.

I’ve intentionally left my daily S&R levels to be set off local time as time and time again they indicate good areas of reversals or bounces and a classic case today with R1 being shown at 1.5235 which coincided with my own short at that level.

Let’s hope tomorrow rounds off a mini recovery.

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