I measured this pattern last week already, but I was too
skeptical that it would work due to all the news and BoE
statements. Now however, it looks promising, but price must
close above the 10SMA again, as well as close above the
weekly pivot point to have a secure entry for a long
position. Especially when trading this pair, extra caution and
patience are valuable commodities.
Looking at the RSI (I use settings 66.66 and 33.33, as
recommended by John Hayden in his book 'RSI: The
Complete Guide') after breaking out from below the 33.33
level, the RSI never dipped below or even touched the
33.33 level, indicating bullish strength.
A look at the SMA's (10 in blue, 50 in magenta, and 200
in black) they reveal something interesting, too. The
10SMA is well above the level where price first closed
above it and is leveled out at the time of writing, showing
short term bullish pressure to resume. The 50SMA,
however, is pointing downward quite sharply, but it too
is higher than when price first closed above it on June 1st.
Furthermore, if price closes above both the 10 & 50SMA
this would confirm the bullish cross over of the two which
occurred on June 4. Then above, of course, is the 200SMA
and it is slowly starting to level out, indicating that
bearish pressure is weakening, naturally, a close above
it would be a very bullish signal.
Trade long (RvR ratio 2.06)
Entry: Close above 10SMA and weekly pp at 145.80
S/L: 144.10
T/P 1: 147.22
T/P 2: 148.12
T/P 3: 149.31
As always, scale out your profits and adjust stop/loss to
suit your personal risk management profile.
Happy trading
skeptical that it would work due to all the news and BoE
statements. Now however, it looks promising, but price must
close above the 10SMA again, as well as close above the
weekly pivot point to have a secure entry for a long
position. Especially when trading this pair, extra caution and
patience are valuable commodities.
Looking at the RSI (I use settings 66.66 and 33.33, as
recommended by John Hayden in his book 'RSI: The
Complete Guide') after breaking out from below the 33.33
level, the RSI never dipped below or even touched the
33.33 level, indicating bullish strength.
A look at the SMA's (10 in blue, 50 in magenta, and 200
in black) they reveal something interesting, too. The
10SMA is well above the level where price first closed
above it and is leveled out at the time of writing, showing
short term bullish pressure to resume. The 50SMA,
however, is pointing downward quite sharply, but it too
is higher than when price first closed above it on June 1st.
Furthermore, if price closes above both the 10 & 50SMA
this would confirm the bullish cross over of the two which
occurred on June 4. Then above, of course, is the 200SMA
and it is slowly starting to level out, indicating that
bearish pressure is weakening, naturally, a close above
it would be a very bullish signal.
Trade long (RvR ratio 2.06)
Entry: Close above 10SMA and weekly pp at 145.80
S/L: 144.10
T/P 1: 147.22
T/P 2: 148.12
T/P 3: 149.31
As always, scale out your profits and adjust stop/loss to
suit your personal risk management profile.
Happy trading