"Money never sleeps, pal..." Remember the phrase from the 80's movie "Wall Street?"
Well this is a good example, it's 2:46 AM ET, and we have a potential XTL Buy on the 60 Minute British Pound. While the trade has not triggered yet there are a few things I like about it. First, we have what looks like a False Bar Stochastic Sell, but if you look closely you'll see that we have broken the 61.8% retracement level. This means that the odds of the market making new lows is very low. While the XTL is a lower percentage trade when you have this type of additional evidence that the market should continue to rally it makes me want to take it that much more. Using the standard XTL Breakout rules for entry we have a buy stop that can be placed at 1.6440. On my XTL Trades I like to go right into using the 6/4 DMA for my stop, if this trade is triggered I will keep a trailing stop along the Red DMA on the chart.
To update you on the US Dollar, we have broken a key support level which has in the past held us from testing the June 2nd low (Green 4X1 Gann Level). Because of this we should see continued weakness on the Dollar and good opportunities to buy into rally's on both the GBP and the EUR.
Ron Wheeler
*** UPDATE ***
The XTL Buy on the GBP is complete, the stop was taken out when we moved below the 6/4 DMA at a price of 1.6508. Total profit on the trade should be around 68 pips.
Keep watching this market tonight as you may be setting up for a False Bar Stochastic Buy if the Stoch drops below 25.
Ron Wheeler
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