Akil_Stokes
Short

GBPUSD: Breakdown of a Bearish Trend Continuation Setup

FX:GBPUSD   British Pound/U.S. Dollar
Many would call me crazy for looking to short the Cable ($GBPUSD) knowing that we're at a major level of structure on the daily chart , but IF we get the right type of retracement, there will be plenty of room to profit and exit the trade in what will simply look like retest of structure lows on the HTF             .

As you can see on my chart price action has recently gone through it's normal stages of expansion, consolidation, followed by expansion. My prediction is that we'll see some continued bullish action off of our current lows and retest that previous level of consolidation where I have an initial killzone made up of Fibonacci retracements and an inversion.. That's where I'll be looking for my opportunities to short.

Each week in the Live Room and Syndicate, we seem to pick a single pair that we stalk for days waiting for the right opportunity. Last week it was the AUDCAD             and that played out pretty well. Hopefully we can see the same here on the GBPUSD             .

Other pairs on my radar to start the week are the USDCAD             (which I'm already long this morning), NZDUSD             and AUDUSD             . Best of luck in the markets this week traders and if you want to see the video version of my Trading Recap just click the link below.

"Trading Recap Week #2: Attacking The $EURUSD" https://www.youtube.com/watch?v=lIxHziWFoTU

Akil Stokes
Chief Currency Analyst & Head Trading Coach
www.TradeEmpowered,com -The Premier Online Trading Education Company
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"Plan Your Trade, Trade Your Plan"




morshedul.sazid
10 months ago
Top Analysis! very nice!
+1 Reply
Akil_Stokes TOP morshedul.sazid
10 months ago
Thank you
+1 Reply
Vostiothenjo
10 months ago
Akil you are not "Crazy" shorting the CABLE and you are right its structure that's building... Cheerz guys!!!
snapshot
+1 Reply
Akil_Stokes TOP Vostiothenjo
10 months ago
Thanks, I'd still like to be crazy though. Seeing how crazy is different and in this field +90% of traders fail, I'd prefer to go left when most other traders are going right
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Vostiothenjo Akil_Stokes
10 months ago
Absolutely man. We are Technicians....
+1 Reply
marcus123 Akil_Stokes
10 months ago
makes total sense to me;
+1 Reply
Akil_Stokes TOP marcus123
10 months ago
Excellent!
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antonyde
10 months ago
snapshot


Akil,in this case where would more wise stops be placed,in 1st or 2st P/L? Thanks
+1 Reply
Akil_Stokes TOP antonyde
10 months ago
I personally don't like any of those areas, but please don't let that stop you from following what your rules say about stop placement for this type of trade.
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antonyde Akil_Stokes
10 months ago
No,sure I won't! What would be your approach on that? Stops above left-handed highs? and maybe targets at support of 2 bottom? (forget about p/l ratio,Im interested solely on stops and targets on that one).
I really would appreciate to let me know what you think about that because I face many times this kind of setup I am not sure exactly how to trade wisely? Thanks
+1 Reply
Akil_Stokes TOP antonyde
10 months ago
It all depends on what you use as a reason for entry, if you're aggressive then stops would need to be above previous structure highs in my opinion
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Akil_Stokes TOP antonyde
10 months ago
Also, if you're not sure how to "trade wisely" it may be worth investing in some education and learning how to
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antonyde Akil_Stokes
10 months ago
Thank you very much! I take seriously every clue you give not just me but in general and due to you I'm becoming better every time!Have a good trading day!
+1 Reply
Akil_Stokes TOP antonyde
10 months ago
That's great to hear man! and thank you for the continued support
+1 Reply
Kjetil_Johannesen PRO antonyde
10 months ago
I'm not Akil, but I bet I know what he's going to say: "It depends on what your plan says". :)
Personally, I took this trade with stops approx. where you have it on 1, but I considered option 2 as well for a potential trend continuation trade shooting for the 1.27 fib extension.
My reasoning for putting my stop was that the structure level we are at is pretty strong. Even though price is moving in our favour, I'm still not confident that I made the right choice.

I haven't done much testing on other strategies than pattern trading, so I don't have Trend Continuation trading in my plan or the statistics to back it up. I just trade it on demo for practice and evaluation.
+3 Reply
Akil_Stokes TOP Kjetil_Johannesen
10 months ago
You know me so well. i know people hate hearing it but it's so true. We spend so much time creating a plan so that we don't have to answer questions like this during our trading.
+1 Reply
AndiThirteenthOne
10 months ago
GBP is going crazy :P but good Analysis! thanks
+1 Reply
Akil_Stokes TOP AndiThirteenthOne
10 months ago
Yeah, the market isn't loving that they keep stalling on this interest rate hike.
+2 Reply
GoodLuckbabe
10 months ago
Akil you are always nice and respected guy and i love your ideas keep up good works mate cheers.
+2 Reply
Akil_Stokes TOP GoodLuckbabe
10 months ago
Thank you, respect is everything to me!
+3 Reply
Stink
10 months ago
Afternoon Akil, Iv'e been watching this and have been shorting and made some great pips on this.

snapshot


All in my opinion of course, have a great day!
+1 Reply
Akil_Stokes TOP Stink
10 months ago
Congrats on the pippage man!
+1 Reply
JPariz Akil_Stokes
10 months ago
martin armstrong thinks it could go to 1985 levels.. not crazy at all
+1 Reply
DerekUweri71 Akil_Stokes
10 months ago
Hi Akil, nice trade!!! What would you call this set up?
+1 Reply
Akil_Stokes TOP DerekUweri71
10 months ago
This is a trend continuation trader, you could have also called in a fib inversion trade if it would have pushed higher
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DerekUweri71 Akil_Stokes
10 months ago
Thanks for your prompt reply Akil.
+1 Reply
Akil_Stokes TOP DerekUweri71
10 months ago
No problem!
Reply
marcus123
10 months ago
weekly pivot and approx Monthly Support(2) equals your potential short zone here;( just some added info)
+1 Reply
Akil_Stokes TOP marcus123
10 months ago
Thanks!
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DerekUweri71 Akil_Stokes
10 months ago
Hi Akil, do you see a continuation pattern on £$ now?
+1 Reply
Akil_Stokes TOP DerekUweri71
10 months ago
yes
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DerekUweri71 Akil_Stokes
10 months ago
ok Thanks. Is it not of interest to you? It looks a bit weird with about 4 pullbacks. Bulls are wrestling with this one, let's see what happens. Thanks again.
+1 Reply
Akil_Stokes TOP DerekUweri71
10 months ago
It's not at a level where I can execute a trad eon it but I'll certainly be keeping a watchful eye
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DerekUweri71 Akil_Stokes
10 months ago
Thanks Akil, appreciate your time.
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akhostov PRO
10 months ago
not a crazy move at all. Think of it in terms of the old phrase: "fortune favors the bold"
Reply
arif_awan
10 months ago
great.
Reply
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