GBP/USD on 7th July 2008

Analysis:
Looking at the daily chart for today, I'd be looking to short this pair.

Reason:

1) AC is red
2) Stoch is red
3) Parabolic SAR on top
4) Below 200EMA
5) Expecting a Fibo Retracement to about 38% - 50% on daily
(see daily chart)

Now let's go into the Hourly chart to pin point an entry.

As you can see from the Hourly Chart, there was a break from the closing wedge.

Hence criteria for entry:

1) Break from closing wedge
2) Parabolic SAR still on top
3) 6SMA still below 23SMA
4) Down trend for today as seen from the daily chart

Entry price: 1.9771
Stop price: 1.9791

Target: 1.9711 (near Daily S2 pivot)

+60pips