New Year Unity!

Good Morning Dynamic Traders!

Welcome to 2009!

This year looks set to provide very promising trading months ahead.

I have added a welcome cross to my trading basket; one that has become the subject of nervous gossip in the recent months. The EURGBP is an extremely exciting doublet that must not be missed.

Although many banks are already treating them as equals, the charts reveal that price edged dangerously close to parity at the end of December, before traders' panic pulled it back to safety.

Nevertheless, we are witnessing an historical high and it is highly likely that the "zero" will be re-tested in the near future, suggesting a very possible breakthrough!

Let's run a fuller analysis on this currency pair.

The monthly chart clearly demonstrates Decembers dictatorship confirming the steady uptrend since mid 2000.

Below is the daily chart.

Although the main trend is upward, indecision candlesticks perched at a trend line support are contemplating an enduring wave 4 breather.

Subjective fib studies divulge the likelihood of price heading down to re-test the figure towards 0.9, before racing towards parity and beyond, abiding by the overall trend.

The sub chart indicators confirm the same.


EURGBP daily chart Advanced Get

The 4 hour chart (below) pleasantly provides similar confirmation.
Our mentors "chicago" indicator as well as the infamous 123 top should be alerting you to an impending downturn.

Prepare for some action - but remember........

The best traders always take an objective stance. They understand the "uncertain" nature of market movement. Anything can happen!

Call up your rules:
determine your entry point via lesser time frames
follow ESLT, be it mechanical or otherwise.
predefine your risks!

Now take a breather yourself and enjoy the day ahead!


EURGBP 4 hour chart Advanced Get

Balanced Trading!

Saba Jackson