Lets go over the long term things first which we've been following. On the GBP/USD, we were looking for a breakout on the daily timeframe from a Bullish Flag Formation. Price has been moving with lots of upwards momentum, and so far has remained above the mid channel of the flag. We were expecting a breakout this week, but it has not yet taken place. We have a penetration, but not a close.On the intraday timeframes we did have an indication that today we might not get the close that we are looking for, because we had a Bullish 1-2-3 Formation. As I always say, "give me a 1-2-3 formation, and I can give you the targets". We plotted Fibonacci Expansions to determine our targets, and price was rejected at the 127 level, so we do expect some retracement. Today is just not the day for the breakout. Lets see how it goes. Monday we do expect strong upmoves on the GBP/USD.Today in the room we had introduced a new technique for the Andrew's Pitchfork - which I call the "flip" technique. As I say, give me a trendline, and I'll give you a target. Very, very effective method for determining the target through the use of the APF. You just need a trendline and you can expect the current move to take you to the target. You'll need to come to the Live Trading Room to find out how we use it, of course!Lets go over some correlations we have been talking about recently. The USD/JPY, on an intraday basis during the New York session, we were expecting some downmoves. As mentioned in the previous recaps, the Yen pairs in particular follow the Dow Jones and the S&P quite well. At the same time, the technicals rule. So we were expecting a downtrend because we did have the Dow retracing from previous highs, and expecting Yen pairs to follow suit - but we also had a technical target. We used the Fib Expansions to plot our target, and the price did manage to stop at the 127 expansion. Fundamentals do correlate, but on the short term basis you must trade on the technicals.Another correlation we looked at was the AUD/USD vs. Gold. Today was the day when Gold rallied above its previous highs. We did expect the AUD/USD to follow suit. It has been on an upswing with no stopping. But as we said, technicals rule - we have a target based on certain Fibonacci Retracement levels, expecting the price to go up to 0.9280, which is the 161.8 retracement level.Keep your fundamentals in mind, get your technicals correct, use the best possible techniques - and at least you know where you stand when trading the currency. That is the most important part. Have a great weekend, and see you Monday for more trading!

Video providers : , and this video is stored with all copyright by