FOREX VIDEO - London Session Review - October 23, 2009

London started off kind of slow today and we bounced around a bit looking for strength versus weakness. Most of us were in some sort of a British Pound long from late in the pre-London session, but we were starting to see some clues of exhaustion, time to take some profit, or protect pips. Then we took notice of the GBP/JPY pair particularly starting to show short term MACD divergence pretty much exactly when it was hitting it's Daily 200ema, previous swing high on the Daily chart, as well as the Weekly M4 reversal pivot point. While none of us wanted to pick a top, that divergence at that resistance was such a clue of a possible impending short trade plan, that any Lower High development on this short term chart was reason enough to give the short a shot with a higher high stop, 20 pips risk or so, targeting about a 40-50 pip move before we reached support again, and we also had British GDP approaching in a half hour or so. The EUR/GBP was also showing a double bottom at 90 cents, as even cable had a short term lower high. This was starting to smell of GBP sell off just before news. Just before the news came out we were 55 pips or so in profit on the GBP/JPY short, definitely protect break even at minimum as news could evaporate all of it, or even take some partial profit. Well the GDP came out negative and Whammo, British Pound 'Everything' plummeted 200 pips in no time at all. So what started out as a conservative lower high off resistance trade attempt, turned into a 300 pip trade by the end, or much more if you were in all the GBP pairs. Simply an amazing way to finish a fantastic week, and a reminder to all of us why you let profits run once you have break even or MAP (minimal acceptable performance 15-20 pips) locked in. You never know which trade will be the monster like this. Have a great weekend folks!

FXBootcamp London Currency Coach-
Christian Stephens

Category:

Education

Tags:

• GBP/USD
• GBP/JPY
• EUR/GBP
• GBP/CHF
• macd
• divergence
• 200ema
• M4
• pivot
• GDP
• news
• London
• Forex
• FXBootcamp
• Christian
• Stephens

[Swervedaplumber]

great analysis..Chris.

[therandon]

Absolute Monster.  BEAUTIFUL - thanks for taking the time to review you trade

[kjguest30]

thanks chris

[jawad2082]

Is next week Bearis for The Sterling Pound?

[dgib1038]

Hey Chris nice video. Keep up the great teaching! dgib1038

[motibitter]

Can't wait to see what will happen tomorrow ...

[1yakko1]

Fantastic review.... awesome.... I made few pips on that!!! Fantastic....

[ked0670]

Excellent analysis and trade set up. Great storyboard leading up to the entry opportunity and lots of patience/discipline witth sticking to trade rules once again pays off. Many thanks.

[olsonlinda49]

awesome

[zaq1222]

Thank you coach.