Tuesday, July 05, 2011
The market decided to screw me shortly after my last post. GBPUSD turned sharply after the PMI release. I decided to get out of the market during this pullback from euro session high just now. It could return to test the support level but I didn't like my level of exposure. You gotta trade the plan right?
My next move is to short cable again if the support breaks (grey area). 1.6127 will be my risk level while my target remain the same (see previous post).
There is a good chance that cable had completed another minor correction phase from its last impulse wave. First target is around 1.5864 which is the 100% projection of 1.6744 to 1.6058 from 1.6546. Longer term projection is around 1.5445 which is the 161.8% projection. As for risk assessment, a break above 1.6100 will change my view regarding this trend continuation.