FOREX Training Video | London Session May 5, 2008

Things were relatively calm prior to the London open with the exception of the Aussie and Kiwi/USD. We had nice subtle rising lows on the GBP/USD with several wicks forming up around the 38.2 Fibonacci retracement of Friday's range.. We also had a Weekly central pivot point at 1.9867, as well as today's central at 77. This allowed us a fairly nice price trap, all we needed was some confirmation. Then we noticed some stochastic, and MACD divergence indicating downside was on the way, quickly followed by a new hourly candle double topping off the central pivot point. With all that ammunition available, there were at least 3 different entry opportunities for a short from the DT at 38.2 around 80 or so, to the final chance after the break of the trend line and a retest to 64, with a maximum risk of around 20 pips for a 80-120 pip target (nice ratio). Once that retest occurred it was off to the races in a short move that could last well into New York. So far this trade has produced a nice 100 pips as of the making of this video, we shall see if ISM helps this trade further today or not. Even if it does not, I'll take obvious 100 pip swings anyday! =)

FXBootcamp London Currency Coach- Christian Stephens