The following is the GBPUSD hourly chart as of Jan. 7th, 2010 – 3 AM EST. If you observe the graph

1) There is a support line for this chart.

2) CCI is below -100 that means it is in oversold region.

3) Stochastics is below 20 that means it is in oversold region.

Moreover in another hour and half that means at 1:30 AM EST time GBP Service PMI news is going to release. Go to forexfactory and check it. The news is in favor of GBP. So there is a very good chance that the pair will go up. One way to enter the buy trade is wait until the news is released and enter the trade if it is going up.

Another way is when the CCI or the Stochastics trying to cross above the oversold region then enter the trade. Check the following graph.

GBPUSD Possible trade opportunity