Confluences:
1) XAUGBP has broken out of what looked to be a descending triangle pattern
2) Price closed above 20/50/100 EMA after thursdays rally and held above this on friday
3) XAUUSD rise will give positive sentiment to gold (correlation)
4) Biden victory
5) GBP weakness seen all of last week
6) Linked to point 5 - Brexit uncertainty / news releases stating significant differences still exists between UK / EU / rumours biden is pressuring Boris to backdown or else there will be no trade deal
The only difficulty with this trade is the RRR - just below the bottom of the previous descending triangle pattern is a sensible place for a SL - however this gives a potential for a -2.4%. I feel I may miss out on this trade by waiting for price to come down further before initiating a long to give better risk setup
1) XAUGBP has broken out of what looked to be a descending triangle pattern
2) Price closed above 20/50/100 EMA after thursdays rally and held above this on friday
3) XAUUSD rise will give positive sentiment to gold (correlation)
4) Biden victory
5) GBP weakness seen all of last week
6) Linked to point 5 - Brexit uncertainty / news releases stating significant differences still exists between UK / EU / rumours biden is pressuring Boris to backdown or else there will be no trade deal
The only difficulty with this trade is the RRR - just below the bottom of the previous descending triangle pattern is a sensible place for a SL - however this gives a potential for a -2.4%. I feel I may miss out on this trade by waiting for price to come down further before initiating a long to give better risk setup