FOREX VIDEO REVIEW: London Session January 8, 2009

After some quick pre-London pips we found ourselves in a precarious position on the GBP/USD as the London session opened 3am EST. While cable was rising, and paying off on some longs after bouncing on the previous day's 61.8 Fibonacci level, it was fast approaching the 1.51 area where we also had an overlapping 38.2 Fib level from the recent highs on the 4 hour chart. This was setting us up for a possible double top scenario, with at least 40'ish pips before any support could be found. In this video I show how we used a 1 minute chart 5ema/8sma cross and lower low for entry confirmation off of the double top/resistance zone. This got us in around 1.5998-99, with a stop around 1.5110 or so, this has us risking maybe 12-15 pips total. Still a decent 3 to 1 reward vs. risk ratio before support showed up on the 15m chart. Ultimately we ended up breaking support and exiting the short on a new 1m 5/8 cross for a grand total of a 62 pip trade. Considering how difficult it was to find sustainable trade plans during today's London session (it was a tough night), a 62 pip trade was enormous. Also with the upcoming BOE rate announcement later this morning we may finally break this area, and start a quality 'ride the 5ema' on the daily chart back to the 153 area, time will tell.

Have a great weekend folks, and don't forget to visit Wayne's Free FXStreet US Non-Farm Payrolls webinar tomorrow morning.

FXBootcamp London Currency Coach-
Christian Stephens

Category:

Education

Tags:

• GBP/USD
• double
• top
• confirmation
• 5ema
• 8sma
• fibonacci
• resistance
• London
• Forex
• FXBootcamp
• Christian
• Stephens

[keris80]

Thanks for time and knowledge, Great Video

[DDDianaDDD]

Great video, Thanks!