{"id":12560,"date":"2010-09-01T08:15:52","date_gmt":"2010-09-01T12:15:52","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=12560"},"modified":"2010-09-01T08:15:52","modified_gmt":"2010-09-01T12:15:52","slug":"gbpusd-moving-average-macd-combo-trade","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/09\/01\/gbpusd-moving-average-macd-combo-trade\/","title":{"rendered":"GBP\/USD \u2013 Moving Average MACD Combo Trade"},"content":{"rendered":"<p><strong>By Russell Glaser<\/strong> &#8211; The Cable continues to move lower and is setting up an opportunity to  short the pair and enter into a trend at the beginning of the move.<\/p>\n<p>Since the August high the price of the GBP\/USD has fallen. The long term <a href=\"http:\/\/www.forexyard.com\/blog\/en\/2010\/08\/19\/gbpusd-multiple-time-period-analysis-signals-changing-trend\/\">trend line <\/a>has been broken and the trend has shifted to the downside. Now the GBP\/USD is ripe for an entry short.<\/p>\n<p>The trade setup uses the 50 and 100 day exponential moving averages  (EMA) along with the MACD. The trade can also use a simple moving  average, but the goal is to enter into a trend at the early stages in  order to capture the most from the directional move. The exponential  moving average adds more weight to the most recent close. This should  help to get into the trade quicker.<\/p>\n<p>Once the price falls below the farthest moving average by more than  10 pips, an entry short should be made. Currently the 100 day EMA is  trading at 1.5335. Today the low for the GBP\/USD was 1.5326, 1 pip shy  of triggering our trade. It is apparent that the 100-day EMA is acting  as a significant support level.<\/p>\n<p>A filter for the trade is the MACD histogram. The MACD histogram is  currently trading at -34. If the histogram had not moved into the  negative territory, the trade would be rejected.<\/p>\n<p>A stop can be placed at the 5-day high of 1.5600 to limit losses if the price goes against the trade.<\/p>\n<p>Profits should be taken at 2x risk, or roughly the early June high at 1.4770.<\/p>\n<p><a href=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/08\/GBPUSD-Daily2.JPG\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/08\/GBPUSD-Daily2.JPG\" alt=\"\" width=\"590\" height=\"650\" \/><\/a><\/p>\n<p><em><strong>Forex <\/strong><strong>Market Analysis provided by <a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">ForexYard.<\/a><\/strong><\/em><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                                                        may not be   suitable     for     all            investors.       There    is  a                      possibility           that             you   could         sustain a    loss       of  all     of       your                   investment and                  therefore  you             should   not         invest          money    that     you              cannot      afford to             lose.  You             should    be       aware    of        all       the       risks             associated     with         Foreign           Exchange           trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Russell Glaser &#8211; The Cable continues to move lower and is setting up an opportunity to short the pair and enter into a trend at the beginning of the move. Since the August high the price of the GBP\/USD has fallen. The long term trend line has been broken and the trend has shifted &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/09\/01\/gbpusd-moving-average-macd-combo-trade\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;GBP\/USD \u2013 Moving Average MACD Combo Trade&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-12560","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/12560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=12560"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/12560\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=12560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=12560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=12560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}