Forex Strategy 05.28.2013: Stay Short GBPUSD, Long USDCAD and EURGBP
I entered short GBPUSD at 1.5533. Prices have now met my second objective to test the 38.2% Fibonacci expansion at 1.5029. I will continue to hold short, looking for a daily close below this barrier to expose the 50% level at 1.4850. The stop-loss has been revised to trigger on a close above 1.5322, the May 16 swing high.
I have also triggered a long USDCAD position at 1.0323 as prices pulled back after clearing a major falling trend line connecting tops dating back to October 2011. I will initially aim for a break above the 50% Fib retracement at 1.0367. A stop-loss will be activated on a close below 1.0283, the 38.2% mark.
Finally, I've entered long EURGBP at 0.8546 after the pair broke out of a Triangle chart formation. I am initially aiming for a break above the 23.6% Fib expansion at 0.8648 to expose the 38.2% level at 0.8803. A stop-loss is set to trigger on a daily close below 0.8494.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.