Forex daily analysis for 08-10-10

GBP/USD

Daily graph: http://www.real-forex.com/charts-daily/081010/GBP_DAILY_081010.JPG

One – Hour graph: http://www.real-forex.com/charts-daily/081010/GBP_1H_081010.JPG

The pair finally crossed the resistance 1.5896 upward after 4 days of anemic candles. However the resistance was crossed back downwards a few hours later. Such a behavior can indicate a very strong reversal trend. Now we suggest you to look for a descending configuration on the one-hour graph in order to start a “Short” Transaction.

Potential Trade

According to our opinion, the descending configuration will happen when the pair will cross the support level of 1.5817. Once this level crossed, we suggest you to enter the following orders for the potential trade:

• “Limit” order on “short” position in case of 10pips breach downward of the support: 1.5817
• “Stop Loss” on the last high occurred: 1.5882.
• We suggest you not to enter a “Take Profit” order, but rather follow the movement of the pair on a one-hour graph.

AUD/USD

Daily graph: http://www.real-forex.com/charts-daily/081010/AUD_WEEKLY_081010.JPG

Please pay attention to these two points:

• During the last session, the pair crossed a critical weekly resistance, and crossed it back downward.
• The pair moved several hundred pips during the last months.

This may indicate a reversal trend. The period of correction resulting from this reversal, can create an opportunity of “Short “transaction. We suggest you to follow the movement of the pair on a one-hour graph and look for the descending configuration which will indicate the opportunity to “Short”.

We wish you a profitable day and a great week end

Real-Forex team: