GBPUSD - Daily Time Frame - Long Opportunity Price Action
Greetings Fellow Traders,
It's been mostly a quiet week, however as is common with forex, you simply just need to wait for the right set up to occur. I've mostly avoided trading the GBPUSD pair over the last month due to there just not being developed opportunities.
Brief History for this trade:
A couple of weeks ago the only analysis I had for Cable (GBPUSD for newcomers) was a potential descending trend line on the Daily chart. It proved to not only be a potential but an actual Resistance Line the market was adhering to. For a little less than 2 weeks, this currency made several attempts to break this Resistance Line but was unsuccessful in closing above it on the daily chart. Simultaneously it created a Triple Top on the lower time frames and ultimately sold off a little bit. At the end of last week, Cable rallied to not only break this Resistance Line but also close well outside of it. Which if you've followed any of the charts I've published thus far is my "Red Flag" for a Trading Opportunity. In Monday's trading sessions we've seen the market very weakly test the 1.5510 levels and recede back. I am looking for a retest of the Former Resistance Line to act as Support.
Pending Buy Limit 1.5390 - or Manual Entry based on preferences
Target Profit 1: 1.5490 - Lines up with the Triple Top formed at 1.5510
Target Profit 2: 1.5630 - Lines up with the high created September 2015
Stop Loss: 1.5300 - Due to the nature of this Support/Resistance Line - I don't think moving below the last swing low is required, we can move our stop closer to our entry point.
Additional Thoughts/Expectations:
Please do your own analysis before entering any trade, and leave comments, feedback or "like"
It's been mostly a quiet week, however as is common with forex, you simply just need to wait for the right set up to occur. I've mostly avoided trading the GBPUSD pair over the last month due to there just not being developed opportunities.
Brief History for this trade:
A couple of weeks ago the only analysis I had for Cable (GBPUSD for newcomers) was a potential descending trend line on the Daily chart. It proved to not only be a potential but an actual Resistance Line the market was adhering to. For a little less than 2 weeks, this currency made several attempts to break this Resistance Line but was unsuccessful in closing above it on the daily chart. Simultaneously it created a Triple Top on the lower time frames and ultimately sold off a little bit. At the end of last week, Cable rallied to not only break this Resistance Line but also close well outside of it. Which if you've followed any of the charts I've published thus far is my "Red Flag" for a Trading Opportunity. In Monday's trading sessions we've seen the market very weakly test the 1.5510 levels and recede back. I am looking for a retest of the Former Resistance Line to act as Support.
Pending Buy Limit 1.5390 - or Manual Entry based on preferences
Target Profit 1: 1.5490 - Lines up with the Triple Top formed at 1.5510
Target Profit 2: 1.5630 - Lines up with the high created September 2015
Stop Loss: 1.5300 - Due to the nature of this Support/Resistance Line - I don't think moving below the last swing low is required, we can move our stop closer to our entry point.
Additional Thoughts/Expectations:
- Volatility/Movement to be quick around our desired entry at 1.5390
- I do not expect 1.5510 to be broken on first attempt after a successful trade entry for this idea
Please do your own analysis before entering any trade, and leave comments, feedback or "like"
Trade active:
As expected price dropped to our entry point - Trade is active - Daily close below support nullifies analysis