Obama give support for a USD3.7 trillion deficit-reduction plan by the five remaining members of the Gang of Six to solve the on-going US debt ceiling talks. The announcement give some strength for USD during the New York session.
As a consequence the uptrend of GBPUSD (gu) was halted at 1.615. Tthe gu or cable was unable to penetrate cleanly the 10 MA on the 60 MTF and trading below the uptrend line. Early Asian session today saw gu moving between the downward sloping 10 MA and flat 20 MA. With 50 MA also moving horizontally, the direction of ug need urging of fundamental news.
For today, UK economic consist of MPC policy decision and data of retail spending.
My first entry for a cable on 15 MTF start at bar 1 with IB bar on inability of prices to pushthrough decisively over the MAs and RSI fell below 50.
Second entry for buy at bar 2 with price action(pa) of IB and Stoc and RSI recovery from the lower extreme. As the 20 MA is below 50 MA the buy position is a bit risky. Exit at break even as gu showed almost a hanging man candle at Bar 3 and followed by a large bear candle with its tail spike below 1.61 level.
Looking at the price action and the MAs starting slopping downward I employed the strategy of breakout of Asian session (24:00 GMT to 5:00 GMT-the shaded rectangle). The breakout target is at 0.618 of the Asian session high and low range as first target and 2nd target at 1.618 of Asian range. My short entry will be just below 1.61 level with first target at 1.6073 and stop loss at 1.6130.
The third entry is at bar 4 with a signal bar of morning star candle and the indy’s reversing from the extreme low.
