Weekly trading signal and pattern 27-02.07/08.08

Update:

GBP/USD, sold at 1.9950 and 2.0020, like mentioned last sunday, was taken profit after the terrible Retails sales at 1.9840. EUR/USD, taken at 1.5900 last monday, as recommended here as well, was taken profit thursday (after expected weak IFO index) at 1.5660. Profits last week: 340 pips on EUR/USD trade and 140 (2x) on Cable.

I expect a sharp correction in these pairs to the upside now. Its still not the time for a really USD trend change. All US data are more or less terrible, and if a surprising data release is out, its mainly because the number is not as bad as expected, but far away from something that could be called good.

I am going to short Cable and Eur again, but only from levels above 2.000, resp. 1.5900, if they ever reach that level again.

Another possible trade this week may be to sell remaining NZD/USD strength. This pair is oversold, and up for a correction, but fundamentally Kiwi (NZD) should only see one direction: down. The economy is weakening and the Royal Bank of NZ made clear that they are going to continue with their rate cuts.

Looking for an entry this week if the expected upside correction comes.  

GAP strategy: no GAPs occured this sunday opening

Have a good trading week!

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