Another Forex trading snack.
Nothing moves in a straight line for long in Forex trading. So with this last bounce of optimism on a no hard Brexit deal the market pounced on bidding up the GBPUSD. There is significant news risk to trading this pair, positive or negative news will push price in wider swings. However this daily flag pattern that seems to be forming just outside of a broken longer term channel is holding it from farther advances. However a broken channel points to price moving in that direction. So should a break of the top of what could be a flag would invalidate this idea, but so long as it is respected it could point to channel trend retest or even a false breakout. This could point to much lower prices for next weeks moves. With NFP not doing much for this pairs movement and no real news pushing farther positive gains, it seems to be a great place to start testing the waters for a short trade early next week should we get farther tests of the flags trend lines.
My game plan....
On any retest of upper trend line of the flag ( blue lines ) is take a short. It has the trend line as resistance and a great limited risk to reward entry going with the longer trend. This could happen early next week.
First profit target would be the channel retest the gray lines. But looking to hold some Incase if a false channel break.
This is not trade advice but training information. Should you choose to trade this idea the risk is all yours.
In life you either make dust or you eat dust.
All the best in your trading.
Nothing moves in a straight line for long in Forex trading. So with this last bounce of optimism on a no hard Brexit deal the market pounced on bidding up the GBPUSD. There is significant news risk to trading this pair, positive or negative news will push price in wider swings. However this daily flag pattern that seems to be forming just outside of a broken longer term channel is holding it from farther advances. However a broken channel points to price moving in that direction. So should a break of the top of what could be a flag would invalidate this idea, but so long as it is respected it could point to channel trend retest or even a false breakout. This could point to much lower prices for next weeks moves. With NFP not doing much for this pairs movement and no real news pushing farther positive gains, it seems to be a great place to start testing the waters for a short trade early next week should we get farther tests of the flags trend lines.
My game plan....
On any retest of upper trend line of the flag ( blue lines ) is take a short. It has the trend line as resistance and a great limited risk to reward entry going with the longer trend. This could happen early next week.
First profit target would be the channel retest the gray lines. But looking to hold some Incase if a false channel break.
This is not trade advice but training information. Should you choose to trade this idea the risk is all yours.
In life you either make dust or you eat dust.
All the best in your trading.
Comment:
Just a longer term view to go along with this idea.