GBPUSD short term thesis:
Brexit related bill going to be voted on tomorrow. Expected to pass, so short term bullish movement may occur. A good reaction will push us past 1.30. If parliament doesnt agree on a timetable, then we'll see the pair trade down.
My criteria for entering a trade:
Long
Short
break below 1.29 on 4H
retest of 1.29 zone with signs of strong resistance from multiple candles
strong bullish candle following retest
below VWMA on 4H indicates possible trend change - good further confirmation
Brexit related bill going to be voted on tomorrow. Expected to pass, so short term bullish movement may occur. A good reaction will push us past 1.30. If parliament doesnt agree on a timetable, then we'll see the pair trade down.
My criteria for entering a trade:
Long
- break above 1.30 on 4H
retest of 1.30 zone with signs of strong support from multiple candles
strong bearish candle following retest
Short
break below 1.29 on 4H
retest of 1.29 zone with signs of strong resistance from multiple candles
strong bullish candle following retest
below VWMA on 4H indicates possible trend change - good further confirmation
Trade closed: stop reached:
Two trades entered on the downside. One got wicked at 1.299, the other was closed manually in a small profit. Didn't feel confident in taking large positions on a trend that may be short. Am awaiting another downside break which will confirm more movement to the downside. Will enter two trades, one meant to be held for no more than a days and another as a swing trade for hopefully longer than a week. Really depending on the VWMA crossing the EMA to confirm a large downside trend.