THE POUND IS GOING DOWN! Or so I think. Here is my short trade. Basically I'm using the fabolous Fibonacci lines and entering a short order at the 38% retracement line on the 4hr chart. My main reason for doing this is because the pound is still in a downtrend as you can from the two sets of moving averages (144 EMA high/144 EMA low and 89 EMA high/89 EMA low). As long as both 89 EMAs are below the 144 EMA low, it's a freakin' downtrend. It's how I establish trend direction baby.



As you can already tell the entry short order was triggered. Let's drill down to the 1hr chart to see if this entry was a good one. I've drawn the pivot points because yesterday was a news day (the almight Greenspan was talking) and as you can the price failed to stay above R1 level so I figured it's going to go down now. Also I've drawn an upward sloping channel and it's hit the top so I also figured it's going to go down. If you notice the EMAs, it's still a downtrend also.



Let's also take a look at the 15min chart. Now after looking at this I'm thinking that was a hella good short entry. Divergences galore! If you look at when the price 1.7470, Stoch had an overbought signal but I liked the divergence better. Also look at that Trix divergence, that's one sexy divergence! RSI also had one too. Also, look at the EMAs, although it's starting to slope upward, because the 89 EMAs aren't totally above the 144 EMAs, that's still a downtrend in my book.