Few pips shy from the trend resistance at 1.26005 (green line), a long legged doji candlestick formed on the 15 min chart. After confirming with a long marubozu bearish candlestick, took my profit on the next candlestick at 1.2588 and entered a short position with a short stop order on the trend resistance at 1.26005 (stop order 1) aimed for a short shot trade at around 1.25500. (arrow 1). "(Profit taken at 1.2560)" This trend line (pink line) a former resistance turned support has been breached more than a couple of times but turned false breakout the same nos. of times. This time around, I am convinced that the price will break the trend line. Either it forms another false breakout and goes back and forth to form a huge triangle (green, black and pink line) or continue its path southward to 1.2350 remains to be seen. But for the mean time I will place a short trade at 1.2575 and eye for an exit at around 1.2550 or hope for a real breakout with a stop order on the trend resistance at 1.26005.
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Stopped by a wick but re-entered short position at 1.25950 on a same conviction eyeing the same support. Good Luck to all.
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Going back to 1 day chart, on my "go with the flow" chart, there's an obstruction at 1.2512 I think this will be broken and the next minor obstruction is at 1.2440. Take a precautionary measure at the fib. retracement at 1.2450~1.2460.
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On the other hand, I chose to exit the trade at 1.2528 for a couple of K's profit and wait for the outcome of the U.S. news on housing and building permits. I will re-enter a short position below 1.2510~1.2500.
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Wow! As I wrote my last comment, the price shoots up to 1.2594. Another selling opportunity here. Entered a new short trade at 1.2580, this time with a stop order above 1.2605. What a great trading day!
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Seems that a call for a snap election by PM May triggered the surge in the sterling.