Thursday, April 9, 2009

Narrow Range Day for British Pound

British pound formed a narrow range bar (NR20/ID) yesterday. On hourly point and figure charts, pound is in a 100 plus pips trading range from 1.4766 to 1.4633. Pound had a fake breakout at early London session. If pound take a breakdown, the 1st downward target would be 4570. Possible support may come from 50% and 61.8% Fibonacci retracement - 1.4532 & 1.4432. To trade narrow range bar, it's not necessary to predict the direction of the breakout, the only thing need to do is to follow the market's leading.

British pound formed a narrow range bar


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