FOREX London Session Video March 5, 2008

After a very ranging day yesterday today we looked for further bounces off our previous few days trend lines. Just before our normal 2am London session open, as London liquidity entered the market, the British Pound Sterling decided to dive off a cliff. One quick look at the GBP/CHF showed us that we were falling right off an upper trend line with no real end in sight for at least a hundred pips or so, which was yet another lower trend line. Even missing the initial fall off the trend line, doing a quick Fibonacci study offered us a couple areas to watch for quality entries on a possible retracement. The first 15minute candle did not retrace, so we adjusted the fib, and sure enough the next fib gave us an overlap of a 61.8 level, 15m 21ema, and the daily central pivot point. All to be done then is to wait for the retrace or enter an entry order. Whammo the 61.8 gets hit and it's a quite easy 90 or so pip ride to the lower trend line. In the video we also show how one additional 61.8 entry was available after the initial target was reached. What a nice example of technical respect of support and resistance.

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