GBPUSD: SMA200 and Possible Trade Opportunities

The price reached SMA200 in the daily chart and it means that we should watch for the price action at this zone. If the price bounces from MA it will be a good buying opportunity in the daily and hourly timeframes. Stop orders for long positions should be placed below SMA200 and the local swing lows. Profit targets should be resistant levels.

The alternative is based on a price breakout below SMA200. It will give a solid bearish signal and we will be able to catch a possible downward movement. Stop orders for short trade must be placed above SMA200. The profit targets are the support levels.

Don't forget that proper money management is a very important part of profitable trading. Don't risk more than 2% of the capital for any trades.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.