Analysis:
Price was in this beautiful downwards trend until recently where we saw a break of that trend. Price managed to break with a strong daily candle signalling to us that there could be a possible change in the trend direction. Price has now pulled back to a key level which has held multiple times as support and as resistance so we expect that it will hold again. We have other confluences as well which line up with our idea. At the area of support we also have the 50% and the 61.8% fib retracement levels which we expect buyers will be sat at willing and wanting to push price higher which works in our favour. At this level we also have the retest of the previous downwards trendline which could hold as support, so this again goes in our favour. Taking a look at the fundamentals the GBP is the 3rd strongest major currency pair currently and with the GBP gaining more and more strength each week we can't see this changing for a while. The CHF is pretty neutral being the 4 weakest major currency pair but again with the current market conditions and the strength of the GBP this is a trade that we will be looking to enter long.
Please feel free to leave any comments you have and like this idea if you agree with us. Any feedback or comments will be read. We appreciate it all.
Stay Safe - JPI
Disclaimer:
This does not constitute as financial advise. We are not responsible for any monetary loss that you endure. Trading is hard to be profitable with and we take losses just like everyone else does to. Our ideas won't always be correct which is why we urge you to always do your own analysis first before entering into the market but please feel free to use our analysis to assist you with yours.
Price was in this beautiful downwards trend until recently where we saw a break of that trend. Price managed to break with a strong daily candle signalling to us that there could be a possible change in the trend direction. Price has now pulled back to a key level which has held multiple times as support and as resistance so we expect that it will hold again. We have other confluences as well which line up with our idea. At the area of support we also have the 50% and the 61.8% fib retracement levels which we expect buyers will be sat at willing and wanting to push price higher which works in our favour. At this level we also have the retest of the previous downwards trendline which could hold as support, so this again goes in our favour. Taking a look at the fundamentals the GBP is the 3rd strongest major currency pair currently and with the GBP gaining more and more strength each week we can't see this changing for a while. The CHF is pretty neutral being the 4 weakest major currency pair but again with the current market conditions and the strength of the GBP this is a trade that we will be looking to enter long.
Please feel free to leave any comments you have and like this idea if you agree with us. Any feedback or comments will be read. We appreciate it all.
Stay Safe - JPI
Disclaimer:
This does not constitute as financial advise. We are not responsible for any monetary loss that you endure. Trading is hard to be profitable with and we take losses just like everyone else does to. Our ideas won't always be correct which is why we urge you to always do your own analysis first before entering into the market but please feel free to use our analysis to assist you with yours.
Trade active:
Now that this setup has fulfilled out entry criteria our order has been filled and we are now long on this pair. We're wanting to see price hold this level and make a move to the upside to confirm the breakout.
Trade closed: target reached:
Price has played out the exact way we thought it would. We've seen price head straight up to our area without really pulling back at all. This would of been a nice RR trade to catch!