📈Long trading setup or a bull-trap? Let me know your thoughts🤔
On the daily chart we can see that the EUR/GBP has been trading in a range of 0.887-0.900.
Yesterday it broke the 24 day consolidation by breaking through the 0.900 daily resistances on the daily level, which is a BIG DEAL.
Throughout this trading pair’s history the .900 level has acted as resistance going as far back as 2011, which tells me it’s an important level and lots of traders are watching.
The break to the upside was caused by the BOE singling that they will increase QE by an extra £100m+, with the markets assuming that more QE will be needed in summer.
I don’t want to FOMO in right now because this is also a great place to get caught in a bull-trap.
For me to go long, I would like to see a few daily candles close above the 0.900 range to confirm the break out to the upside, and see the 0.900 resistance level turn to support via rounded re-test.
For that to happen I’d probably get in around 0.900 with a stop at 0.8987 and a take profit at .9500 for an R of 3.46.
If we get to the 0.8987 my idea of a breakout has failed as we’ll be near the mid of the daily trading range.
I take profit at 0.9500 because that was the top of the last daily candle during the fake out, and I suspect there to be a lot of sells if reaches that level.
If you have any questions please feel free to leave a comment
Yesterday it broke the 24 day consolidation by breaking through the 0.900 daily resistances on the daily level, which is a BIG DEAL.
Throughout this trading pair’s history the .900 level has acted as resistance going as far back as 2011, which tells me it’s an important level and lots of traders are watching.
The break to the upside was caused by the BOE singling that they will increase QE by an extra £100m+, with the markets assuming that more QE will be needed in summer.
I don’t want to FOMO in right now because this is also a great place to get caught in a bull-trap.
For me to go long, I would like to see a few daily candles close above the 0.900 range to confirm the break out to the upside, and see the 0.900 resistance level turn to support via rounded re-test.
For that to happen I’d probably get in around 0.900 with a stop at 0.8987 and a take profit at .9500 for an R of 3.46.
If we get to the 0.8987 my idea of a breakout has failed as we’ll be near the mid of the daily trading range.
I take profit at 0.9500 because that was the top of the last daily candle during the fake out, and I suspect there to be a lot of sells if reaches that level.
If you have any questions please feel free to leave a comment
Comment:
Trade was hit on the 25th of June and currently in play :)