MARKET GIST: In my usual manner to expose high probability setups - TopicsExpress

MARKET GIST: In my usual manner to expose high probability setups and have traders profit from them, im delighted to bring on board GBPUSD sell setup. The old clique that the trend is your friend is and will forever remain relevant within the trading context. However, there are times when the trend may just not be your friend, the reason being that our whole idea of what constitute a trend is relative to the time frame one employs in his chart analysis. For instance, a market could be considered to be in an uptrend on a monthly frame whereas on a much smaller frame the same market is regarded bearish. As much as a traders constant romance with the bigger picture would pay off in the long run, it is equally important that traders duly observe their charts with a view to ascertaining when a dominant trend might be ending or at best taking a breather. This is the current case of GBPUSD. Looking at the chart, one needs no special lenses to tell that GU has been in an uptrend for a while now. However cables uptrend came to a halt on topping out at 1.6602 some three weekly sessions ago. The topping out is evident by the lower lows price has made, diverging conditions from oscillators, price action setup, plus the obvious fact that this area is a strong resistance as price has had difficulty breaking above it in time past. Fundamentally, despite the recent positive data released from UK, economist still hold that the UK economy is yet to be free from its double dip recession hence the tendency for cable to decline in the near term. Based on this development, ill go bearish on GU and ride it all the way to 1.6196 and 1.5920 in extension with my stop at the weekly high should in case it turns sour. Below is a weekly chart of GU for your perusal. This for me is considered the trade of the week. Join me if it tickles your fancy. Enjoy the rest of your weekend and have a pipful trading week ahead.