My Next Idea:
GBPUSD has been consolidating in a wedge formation, It is coming to the end of the formation so we expect a break out. I think this will be on the bearish side.
I expect it will break out to around the 200MA around 1.35800, then retest the lower side of the trendline before heading down again to support which I make around 1.35320. When this happens I will use a trailing SL and follow the action down.
Initial position:
Entry: 1.36828
TP1: 1.35800
SL: 1.37800
After lower high is formed around the lower trend line:
TP: 1.35320
SL: 1.37011
GBPUSD has been consolidating in a wedge formation, It is coming to the end of the formation so we expect a break out. I think this will be on the bearish side.
I expect it will break out to around the 200MA around 1.35800, then retest the lower side of the trendline before heading down again to support which I make around 1.35320. When this happens I will use a trailing SL and follow the action down.
Initial position:
Entry: 1.36828
TP1: 1.35800
SL: 1.37800
After lower high is formed around the lower trend line:
TP: 1.35320
SL: 1.37011
Comment:
Note when the lower high is formed around the lower trend line this is bang on the 50% Fib
Trade active:
This has broken the trend line and has re-tested. The next day or so will be pivotal. if it returns to the channel then this was a false break and it will go long to the upper trend line. However If, as I think will happen, we are now seeing the re-test then this will drop considerably.
My current SL: 1.37281
TP: 1.35400
My current SL: 1.37281
TP: 1.35400