GBP DAILY CHART 5-23-2007

I rushed out the last post and here is the daily perspective chart. If we do not get a bear pivot on the intraday you can look for price to carry up to the daily trendline.

The top area of the long white range bar (blue lines) is appearing more and more to be the ultimate target. not only that but it is 23% fib retracement on the daily and is upper trend line resistance. so that is triple resistance which appears to be the only thing that can stop this runaway train.

a close of this current 4hr bar above the upper 4hr trend line will signal next stop that daily triple resistance. At the rate it's going it may hit that daily resistance before this current 4hr bar closes.

Not only Did United Kindom raise rates, they expressed a bais towards raising rates even higher which is going to make GBP VERY STRONG.

jERRY

GBP UPDATE 5-23

As you can see by my post last night the market has not presented any surprises. Unfortunately when the entry signal came at 5:00 am est I was asleep. I tried to stay up but this nasty little bug I have and the medication I am taking for it would not let me.

If you are following the news as I've been suggesting then you knew that an interest rate meeting was held for the United Kingdom today, while most United states traders were asleep.

We had an outside pivot bar that formed at the close of that 5 o'clock bar and it formed after hitting 62% fibonacci and yesterdays open as I told you we would first fall to here then go up and this is exactly what occurred.

This 1hr outside bar (pivot bar) closed above the trendline. Had I been awake this was an entry signal. Then this market closed above 4hr 3bar at the close of the 6:00 am bar which was another entry signal. And in a classic formed pulled back to touch 3bar in a support/resistance reaction as outlined in LCM.

As you can see, we have now stalled at the upper trend line that I indicated would be the target for and up move. The market needs to rest and should reverse pivot down here on the intraday to the 9770 area to test the area of the breakout which is also a retest of 38% fibonacci on the daily chart as well as a test of the daily pivot point.

So, as always I don't trade on what I think I trade on what the market shows me. I'll be watching for a reverse bearish pivot off this upper trendline on the intradays to confirm my analysis. In that way it doesnt cost anything if I'm wrong.

So, sorry I couldn't get in what you would call a specific market call with entry an exit but, it did come as close to that without just saying trade here. I gave you all the information you would need to make an informed decision. Everything except hand you the trade on a silver platter.

Jerry
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