Been patient for a few days now and finally starting to see some setups that I like. The GBPUSD broke a major trend line and failed to bounce after the break. The pair has been hovering around the 38.2 FIB level as seen in the photo which signifies the trend is still in place. The 62 EMA is also below the 200 SMA and failed to cross and just below the 62 EMA became resistance for the pair. I am looking for an AB=CD pattern completion here.
Pair: GBPUSD
Entry: Short on hourly close below 1.4995
TP1: 1.4860 (Low of 3-2-10)
TP2: 1.4720 (Completion of AB=CD pattern)
SL: 1.5060 (50 FIB level and above trendline)
Move SL to BE: 1.4880
Cancel: Cancel if we hit 1.5050 before entry
Size: 1
I have decided to close half of our GBPUSD at 1.5780. (View Original Trade)
Stop Loss has been moved to break even
TP2 is final profit target.
As seen on the above hourly chart, the GBPUSD is continuing to consolidate after last weeks sharp sell off. I am looking at another potential long under the following condition.
Entry: Close above 1.5720 on hourly bar
TP1: 1.5820 (38.2 FIB)
TP2: 1.5890 (50 FIB)
Stop Loss: 1.5600 - We will move our stop loss to break even at TP1, 1.5720.
Cancel - Cancel this trade if price hits 1.5610 before entry
Just a quick update on the GBPUSD trade we entered earlier this morning as a few of you asked if I took profit. (View Original Trade) I was entered on the trade at 1.5630. I just hit my first take profit of 1.5700 and have moved my stop to break even. Final profit target is 1.5815.
I am looking at going long the GBPUSD again. We discussed this potential setup last week. (Click here to view post)
Long Entry: I will enter the position if we can break the long entry line and close above it on an hourly bar. I will cancel this trade if we break below 1.5520 before entry.
Take Profit 1: I will take off half my position and remove the remaining half to break even at 1.5700 which is around the 23.6 FIB level and the 62 EMA.
Take Profit 2: 1.5815 - 38.2 FIB level
Stop Loss: 1.5520
I have canceled my GBPUSD order. (Click Here To See Original Article) I still like this potential setup, I am going to wait until Monday and reevaluate. Have a great weekend everyone!
On the above hourly chart of the GBPUSD we can see the pair has remained very weak over the past few days. However, I am seeing two signs of a POTENTIAL slowing down and reversal. First we have bullish divergence forming as seen on the MACD. Second we are nearing an AB=CD completion pattern. Ideally I would like to see the AB=CD pattern complete around 1.5650 and form some type of bottom formation. (double bottom, pin...) I am looking to go long on the following conditions.
Long on a break and close above of our entry line drawn in red on an hourly chart.
Take Profit 1: 62 EMA which is currently near 1.5850. I will move my take profit on my second half to break even at this point.
Take Profit 2: 1.5890
Stop Loss: I will put my stop 10 pips below the most recent low.
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To start the week we saw a large rally on the USD across the board. In the past few hours we have had a nice retracement and I am now looking to go long the USD again. We don't have any huge numbers coming out in the next 24 hours so I expect to see more dollar strength with at least a retest of lows.
On the above chart you can see the Euro had a very shallow retracement to the 38.2% Fib level which usually is a sign that the trend will continue. I am going to look for an AB=CD completion as I have drawn on the chart. I will enter if we can break and close an hourly bar below the trendline I have drawn in red.
Potential Short: Close below red trendline which is currently below 1.4825. I will cancel this trade if we break above 1.4915 before entering our position.
Take Profit: 1.4660 (AB=CD Completion)
Stop Loss: 1.4920 (50% retrace of current down move)