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Sublime_Trading
Jun 24, 2018 3:41 PM

The GBPUSD at 20sma Resistance Short

British Pound/U.S. DollarFXCM

Description

Last post: June 21st.
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Review: Price had triggered our short trade but finished the day bullish.

Update: Price continued to gain strength but is now at the daily 20sma which is acting as resistance.

Conclusion: Applying patience as we look for resistance to hold strong and for the bears to come back in. A break and close below support needed.

Any comments or questions, do not hesitate to leave them below. Give us the thumbs up if you share our sentiments!

Sublime Trading
Comments
niloyare
i think its going reversal to an uptrend because
on the daily time fame rsi it show an over sold and a diversion on the rsi price
and on the begging of this reversal we could see a bullish engulfing pattern formation
on the weekly time frame its trending on a major support line

its bit early to decide that why am waiting for a break through 1.34615 price then a small retrace and a buying signal to buy this currency
Sublime_Trading
Hello @niloyare, you may be correct but trying to predict bottoms and reversals of the long term trend is a difficult and inconsistent way of trading. At Sublime Trading, we like to keep things as simple as possible and go in the direction of the established trend. We use the 200sma to do that which is an established way of establishing the trend direction based on techniques that date before the internet. If price is below the 200sma we look for short trade and long trades above the 200sma. The challenge with using RSI amongst others is that they are lagging indicators. Price should always be your primary indicator. Try and avoid using words like "think" as it involves predicting and guesswork and let price dictate what to do.
ahmedzahid2799
@Sublime_Trading are you still shorting from previous posts?
Sublime_Trading
@ahmedzahid2799, Yes we are holding a short position and riding our this pullback for now. This is just normal price movement. We will look to to add more positions if and when price clears 1.3000 support as it is a round number.
NadineHe
A break and close below pivot support for a first entry? If one is not already in the trade?
ahmedzahid2799
@NadineHe, what entry are you looking to take to go short?
NadineHe
@ahmedzahid2799, "I am a member of the Sublime Trading community and I will be trading this using a breakout strategy used in the community.
Sublime_Trading
@ahmedzahid2799, We do not share specific entry points and stop-losses outside of the community. We have a fully FCA regulated environment to do this with a years worth of history that totals over 200 000 points for 2017.
Sublime_Trading
@NadineHe, The short entry highlighted in the trading community is still valid as price has pulled back above. You can place this trade.
NadineHe
@Sublime_Trading, Thank you I have placed the trade.
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