The only decent move was to buy the pullback to the 50% Fibonacci level (at the start of the American session) and pocket at least 40 pips. Unfortunately I was full of NyQuil at that moment and unable to trade

Cable Update (GBPUSD)

I got these valuable lessons from the School of Hard Knocks and after studying thousands of charts. Any technical analysis specialist knows that a bullish chart pattern (let's say an ascending triangle) is even more powerful if the trend is ALREADY ...

Cable Update (GBPUSD)

On the contrary, when top Head and Shoulders formations start to appear during a downtrend, this is a powerful confirmation that the downtrend is solid and about to resume. Shorting TOP head and shoulders patterns during a clear downtrend is a high ...

Cable Update (GBPUSD)

Here are two inverse top Head and Shoulders formations in a downtrend on the GBP/USD (4H). Both are winners (the "Head" was never challenged in both cases). In other words, here we are using the head and shoulders pattern as a continuation pattern, ...

Cable Update (GBPUSD)

But who says it's a bottom? A top Head and Shoulders formation can also appear during a downtrend. it's called an Inverse Head and Shoulders. In fact Inverse Head and Shoulders are high probability setups because the trader is trading WITH the trend. ...

Cable Update (GBPUSD)

Not so sure about that, Bones. Here is another way to look at the cable on the daily charts. That means the GBP USD could hit the upper channel and then go down big time... And if you look closely you can even see some kind of Head and Shoulders ...

Cable Update (GBPUSD)

Yep, I told you that beast does not respect anything. It broke the downtrend line (to entice the buyers) and then made a HUGE pullback all the way back to the trendline. It even went BELOW the last pivot low, another setup to sucker the sellers! And ...

Cable Update (GBPUSD)

I have the flu and fever so I cannot baby-sit that GBP/AUD trade, but before I leave let me show you that phony breakout on the GBP/USD. Like I said before, the cable is notoriously known for its disrespect for trendlines. Over and out.

Cable Update (GBPUSD)

+25 pips, stop has been moved to break-even.

Cable Update (GBPUSD)

The winning "horse" was of course the GBP/CAD, it moved more than 200 pips with virtually no pullback, after the Bank of Canada report at 10 AM. Oh well.

Cable Update (GBPUSD)

Short GBP/AUD at 1.6325, 25 pip stop.

Cable Update (GBPUSD)

Out at 1.6320 on that long GBP/AUD position, waiting for possible long re-entry. 32 pip loss (break-even on first trade and then 16 + 16 pip loss) Total this day: 68 pip profit. Never argue with the market, trade what is happening, not what you ...

Cable Update (GBPUSD)

Buying more GBP/AUD at 1.6336. Asian market makers are trying to shake us out of that ascending (bullish) channel...

Cable Update (GBPUSD)

Bought more GBP/AUD at 1.6336 (I like to play with the house's money).

Cable Update (GBPUSD)

GBP/AUD is temporarily stuck in an ascending channel (see chart below):

Cable Update (GBPUSD)

Bought GBP/AUD at 1.6320, 40 pip stop. Let's go.

Cable Update (GBPUSD)

Csc2009, the thing is, nothing will happen until the cable touches that 50% Fib level, located at 1.2220. Without uncertainty there is no market, Forex or otherwise.

Cable Update (GBPUSD)

Most likely scenario, in my opinion: the cable is going to drop to 1.2220 and THEN it will continue to go up.

Cable Update (GBPUSD)

Alright, the GBP/USD has now lost its momentum and is just fooling around so I will concentrate on the GBP/AUD, ahead of the Australian Unemployment numbers due at 7:30 PM EST, because this is where the action is. I put a limit buy order at 1.6308 ...

Cable Update (GBPUSD)

Ok, here is a 10-year weekly chart for the GBP/USD. All I can see is weakness of course but no specific, clear-cut trendline of any kind: url (Personally I never use weekly charts, they are virtually useless for day-trading purposes).

Cable Update (GBPUSD)