GBP/USD – Setups to sell from daily charts, 4-Hour chart,and 5-minute chart

by jennifer on February 20, 2012

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Hello Trader People. Happy Monday. It’s a holiday for me, for I can’t stay away from these charts.

I do not have a strong Combo setup to show you today, but here are some interesting charts with an idea to to sell GBP/USD, based primarily from my daily chart. I couldn’t help but notice some pivot points on my 4-hour chart, and the Bossilator numbers are starting to stack up on the 5 minute chart. Come on, I’ll show you…

Daily chart:

1. Price is sitting right at the inner upper band. There are about 65 pips of room to the 20 SMA.
2. The shape of this chart right now suggests a little consolidation after a large upward trending move (orange arrow). From the top band to the bottom band the width is squeezing into something that looks like a range.  I shaded that area in blue, so I can watch my analysis and see if it changes. It’s not surprising that the 800 SMA, dashed black line, is the level price was in a hurry to find.
3.  I am interested in a sell for some pips in between the inner upper band and the 20 SMA (green line).
4-Hour Pivots Chart:

1.  The red line is my estimated entry line, 1.5840. A move below that and I’m interested in sell with a profit target at the new weekly pivot, 1.5795.
2. Much lower is a purple line where the February pivot point is sitting. If this pair is not starting a new upward trend, it would be likely that the level of the monthly pivot should be touched before the end of the month. Just a thought. There are 240 pips of room in there. I will be staying on this level for the next couple of weeks.

5-Minute Bossilator chart:

1. It has been over 600 bars since the last time price collided with the 800 SMA on this 5 minute chart. That number is not terribly extreme, but anything over 500 makes it a chart worth keep on top.
2. I drew a green line where price is now. Looks like a clean area for entry of a sell position, targeting the 800 SMA, currently at 1.5794.

PLAN:
1. I will sell for a move below the entry line from the 4-hour chart, approximately 1.5837, with stop loss placed right back above the entry line, and profit target for me of +30 pips. I like to have margin for error.
2. Most importantly, I will move to break even as soon as the position is +10 or more.
3. Long term, I am thinking about holding a small position open from our entry to the monthly pivot point at 1.5610, also with a tight stop loss placed right above the entry line.

Good luck! Happy trading, and have a great Monday.

Jennifer

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