GBP/USD Idea for Long and Short (After News)
I published this idea earlier but realized I missed the support from the 4H chart.
DO NOT ENTER A POSITION BEFORE THE U.S. NEWS RELEASE. Just have pending orders for both and watch for volatility stoppage.
LONG Scenario (Good U.S. News):
If the breakout is upward, look for an entry around 1.428 and exit after a decent 40-60 pip capture.
SHORT Scenario (Bad U.S. News):
If the breakout is downward, I expect a lot of resistance on the way down (see cloud) and the price will quickly move back up. Look for an entry around 1.4225-1.423. The price may bounce back up quickly due to resistance, but it will eventually go down.
There is a support around 1.405 on the 4H chart. Watch for trend shifts and the price may continue down to the support level if the news dictates.
Feel free to critique/comment!
DO NOT ENTER A POSITION BEFORE THE U.S. NEWS RELEASE. Just have pending orders for both and watch for volatility stoppage.
LONG Scenario (Good U.S. News):
If the breakout is upward, look for an entry around 1.428 and exit after a decent 40-60 pip capture.
SHORT Scenario (Bad U.S. News):
If the breakout is downward, I expect a lot of resistance on the way down (see cloud) and the price will quickly move back up. Look for an entry around 1.4225-1.423. The price may bounce back up quickly due to resistance, but it will eventually go down.
There is a support around 1.405 on the 4H chart. Watch for trend shifts and the price may continue down to the support level if the news dictates.
Feel free to critique/comment!
Comment:
So it ended up touching 1.4227 before the news announcements but ever so briefly. Make sure you do not open a trade before the news announcements!