FullTimeTrader
Long

GBPUSD-breakout strategy

FX:GBPUSD   British Pound/U.S. Dollar
391 3 2
This strategy is said to be very reliable, specially on higher timesframes (D1 and more).
I should notice this setup yesterday but its not late.
Here is the textbook theory:
1) Prices is on clear downtrend
2) Prices breaks an important area of S/R and retraces inmediately within 3 candles
3) There is divergence on histogram and moving averages on MACD
4) Risk/Reward ratio: at least 1 to 2
Lets see what happens
Best Regards
I agree. We could have significant bottom formed here not just a low to bounce from as retracement of the recent decline. We might get a strong rally from here. Thanks for sharing.
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Hello, i always start making a top down approach from higher timeframes, looking for S/R areas that are closer to current price.
Looking at W1 chart, the 1.5955 level is the last two weeks support (not currently week).
After that, looking at monthly chart, there are many touches, but i can remark the 1.5955 level as support almost to the pip in Feb-March-April and June 2011.

Greetings.
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1. Can I ask how you determined the strong areas of support levels ?
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