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Post of the Day: GBP/USD
Tuesday, 07 October 2008 06:19:53 GMT
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- Tuesday, 06 October 2009 08:57:14 GMT The Trend of the Day - GBP/USD
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Student’s Question:
Retracement to break the 38.2 Fibonacci at 197.00. Resistance at that level adds further confirmation of short trade entry. Stop placed just above resistance level and 38.2 fib. Order entry at breakout bellow 38.2 Fibonacci. Is that the correct way to use Fibonacci’s?
Power Course Instructor’s Response:
Well done...
This shows you have an understanding of how to trade utilizing Fib levels to enter trades.
The GBPJPY pair is in an overall downtrend on the Daily chart and has retraced to this 38.2% Fib level. Executing a short position with a stop just above that level (as you did) is the higher probability way to enter this trade.
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