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GBPUSD Channel Trading

Thu, Oct 2 2008, 08:43 GMT
by Forex Hound Analysis Team

ForexHound.com


Looking at the chart below we can see how interestingly GBPUSD has been trading for the past 5-6 weeks, every swing move has been confined in an nicely defined channel. Breaking out of the channel meant a trend reversal, with this in mind we are waiting for the current bearish channel to be broken especially considering how steep and tight it is; a conservative trading approach would be to wait for the first retracement after the break and open a position there, however aggressive traders will certainly want to enter at the start of the move fine tuning an entry on the smaller timeframes right after the break.

GBPUSD


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Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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