#GBPUSD Outlook 08/07/2011

The Pound still holds some good opportunities for trading this Friday. Current prices show that we have close to an 80% chance of further expansion south towards the completion of the average weekly range.

If we get an aligned downtrend (month/week/day) tomorrow, than 2 trades could be possible:

1. If we have a downtrend day, than trade the pullback towards the high of the day targeting the average daily range and/or the weekly range.
2. Take the entry on the break of the weekly/monthly low following the direction of the main move. I will take this one only if the price action   permits placing a SL at a reasonable distance if compared to the potential profit.

Lets see what is reserved for us tomorrow.

In the case of a downtrending day tomorrow, the entry should be guided by tomorrow's high of the day towards the main move.

Price is much closer to an expansion south. Therefore, If tomorrow's price action allows, a position on the months/weeks break could be taken.