Day trading the Forex GBP-USD Pair May 2-3

GBP May2 -3

This is my day-trading chart for the Forex pair British Pounds/ USD. Today, there were two opportunities. The large swing came in the Asian - European sessions around 600 GMT.

The important items to notice are (1) prices moved below the prior daily low, the brown line at the top, rallied back to that area and started down. The ovals at this point depict the rally high along with the bull-power line, the green line in the first inset below the chart, falling into the middle of the inset, while bear-power has risen to similar levels. That is bearish. The adjacent rectangle shows prices rallying back to the moving linear regression line while %b, the lower inset, falls. That is also bearish. Sell on a lower low and hold on. There is no reason to hold beyond 1030 GMT: prices have gone above and stayed above the LR line, and they are going firmly sideways.

The next opportunity for profit comes in the US trading session at about 1800 GMT. Prices have moved back under the LR line, bull-power has receded while bear-power has risen, and the %b has drizzled down to mid-chart. Selling the new low works well, though not nearly so well as the first trade.