With news bombs flying around GBPUSD has finely broken higher. But what’s new here with these kind of moves right?
It seems the market is leaning very negative, so when there is news, rumors of news, or news that can be interpreted as positive / no hard Brexit, the currency has a higher probability of jumping higher.
But as I was saying in a previous post I was waiting for higher prices to then go short once again. However when triangles form like this one did on the 4 H chart....
Then I usually take an aggressive counter trend trade— just in case of such moves. My idea here isn’t based on technical or economic changes, but on nailing the traders who entered the trade on the short side expecting a normal triangle break with the over all longer trend, but were stopped out on a news bomb!
I was able to scalp 65 pips by setting a long order just over the top triangles and then set a take profit just under my new order short zone I had pointed out some days earlier.
For the short trade idea now...
I’m looking to enter short orders around the 1.23 level or that longer term black descending . It a swing style trade, so a good technical level with the 50 and 61.8 fib’s And that descending . If GBPUSD does push over the 1.2380-1.24 price I’d expect short traders to get squeezed and run for the hills. So I feel short traders will defend the zone where my entry price targets are.
We will have to wait to see what happens in Asia’s Friday’s market open or maybe even Europe’s open. I suspect this triangle break will have some traders yet grabbing their short trade profits before the weekend. In turn giving my short trade idea a better price to enter.
As normal, if you trade any ideas, the overall risk of loss is yours. This is not trading advice, but for training purposes on how I trade the markets.
In life as well as in trading, you either make dust or eat dust!
All the best.