Hello guys, a simple but effective analysis on GBPUSD also know as Cable. This trade was taken by me personally due to numerous confluence coming hand in hand. Also a great risk to reward ratio was achievable .
The idea behind it was simple, huge bearish momentum pushed price to a very strong support zone; considering the tremendous amount of bearish pressure, price rejected this support zone tremendously which is best displayed on the 4 hour time frame. There was a huge wick present on the 4 hour rejecting this zone which enticed me to enter long with a favourable risk to reward.
Finally, with this trade there was no drawdown what so ever, straight into profits. Currently sitting at 50 pips in profits. I due however, intend to hold this trade until tomorrows New York session as I due believe the pair has more room to push to the top side. Note the GBP pairs have huge amounts of movement in pips throughout the day.