Welcome to our newest feature; DecaPip. The concept is simple: our professional market technician, with an exceptional system, showcases his own daily Support and Resistance levels across a broad spectrum of FX currency pairs. The most effective way to use the levels are:
- If indicated levels hold, look for the price to reverse.
- If levels are broken, look for the price to continue past to new highs or lows.
In our Friday edition of DecaPip Daily I would like to turn your attention to the GBPUSD currency pair and a potential trade set up that I have been watching all week.
As noted previously in this column GBPUSD has been enjoying Friday madness lately and catching a Bid on the last day of the trading week.
For the last five trading days in a row the currency has been making higher high’s on the daily time frame.Today we failed to make a new higher high and I think this pair deserves our attention tomorrow to see if sellers are ready to come in and take it lower.
The chart below illustrates my point very well.
The first trade set up on this pair would be a swing sell position if we fail to break yesterday’s high.From my own point of view the risk reward is tremendous if this set up works and the sellers come in some 5 to 10 pips below the high from yesterday’s daily candle.
The second trade set up would be to locate a far away resistance level to swing sell and capture some quick DecaPips if we broke the high of yesterday and continued on to make a new weekly high.
The current R2 located around 1.5740 should offer some strong resistance for tomorrow if we happen to make a breakout upside move.
Friday should prove to be a very interesting day of trading for GBPUSD as other currencies are breaking there recent ranges across the board in the foreign exchange market .
It seems this pair is destined to make a decisive move shortly.
Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com
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