Equity markets are bouncing around still, so is gold and oil – market seems to pay most of the attention to the situation in Syria.
On the FX side, it is GBP which is currently showing strength and moving up the matrix. This now gives rise to six pairs that could be considered as strength/weakness combinations – with EUR, CHF and GBP strong and AUD and JPY as weak.
Out of those six combinations, only GBPJPY is in a S1/S2 setup – and I am already in a trade on this one. The trade is currently down around 20 pips (stop is 65 pips). No further action required on this open trade.
There are many other pairs in a S1 or S2 setup. Ignoring those that are either both strong or both weak we are left with GBPUSD, USDCHF and EURUSD – each of those are currently showing a good retracement on the D chart – I would need to wait for confirmation of bearish or bullish PA before taking a trade.
- Take another look at the chart at the close of the day to see how the daily charts are panning out. Bear in mind that next week is going to be NFP day though.
- Very soon I would need to make a detailed record of the GBPJPY trade that I entered yesterday.