Week ahead – GPBUSD, NZDUSD, CADJPY

Looking ahead this week I am watching three pairs which are on my watchlist. The first one is GBPUSD where I am currently holding a SHORT position from 5350’s. I have been watching this pair for months without putting any longer term trade on. I couldn’t read the price action well, longer term patterns seemed to be unreliable and I just didn’t like what I saw. The 54 and more precisely 5350’s – 5380’s was a critical zone to watch for me since it is a support zone which was holding several times during the 2011. On a weekly we can see H&S nearly formed and weekly closed lowest since 11.7.2010. That said I am short but very well aware of the ascending trendline which I might come across at around 51. It all depends how fast we are going to sink (if ever). My TP is at 50 – 49 zone depending on the price action with RR to be 3:1. I am risking 1% of my account on this trade which SL being at above 55.

There are other pairs I am watching closely. I like NZDUSD (still prefer short) where a nice ascending trendline was formed and tested 4times on daily. In my previous posts I have mentioned that  I want to go short on DAILY close below 7775. That vision has changed since we moved and created HH. If the trendline is broken I want to see the retest of 7775 and then retracement back to 7850. If a bearish candle is formed there (H4-DAILY) I am planning to start layering SHORT – first pos 1/2% account size and second layer entry when closed below 7775 on daily (1%).

Last pair I like is triangulating nicely and it is CADJPY. I got my eyes on this pair but it would have to be supported by some major news. Otherwise I am not getting in since I would not feel comfortable in this position. In terms of positions from last week GPBCAD, USDCAD, EURCAD did not do what I expected so no trades there. 

Let’s see how things unfolds …