GBPUSD Setup - 02 May 2011

I hardly trade last week due to all the happenings rally speeches for our coming election on 7 May 2011. Really excited to see so many Singaporeans not happy with the way our current government handle the country. I hope to see the number of people who attended the rally speeches would turn out as a vote for the opposition parties especially for WP & NSP.

Aside from the GE2011, back to my trading chart again. Around 300pips range moved by cable for last week which was abit boring due to market consolition especially price is near 1.6700 (all times since 15 Nov 2010). Will it break through and head to 1.7000? We should be able to see it in the coming days. Alot of critical news for GBP coming up for this week.

I've drawn a current TL on H4 as well as S&R on my chart. It will be bullish to me based on my charting as long as the TL is holding. I am looking setup where price might rebounce off from 1 of the support level especially those in red color or price bounce off from the TL. It did happen this morning when i saw an inside bar formed after price failed to close below 1.6580 (intesection of the TL & the red support line). I immediately placed a pending buy order slightly high of the IB at 1.6620. SL will be looking around 1.5870 (10pips below the support level at 1.5880. TP will be looking around 1.6720.

EP: 1.6220
SL: 1.5870
TP: 1.6720



Trade update: SL hit -50pips