GBPUSD, Daily, area of previous support, round number bounce
I like to enter where the majority of the stops reside. In this case, the rectangle is my area of interest. If you look at the weekly chart you will recognize this as a visible swing low. In the core, this is still the Spring Setup I hunt for, but less obvious this time as there is no clean AB=CD that can be drawn.
Also can't miss the round number and expect a quick bounce from there. The blue line is a 200 Daily EMA - and it's one of the most watched EMAs in the higher timeframes.
The plan is to enter at the level with a tiny stop loss for which I will use the 4H chart ATR.
Notice that on the 4-hour chart, this trade looks like a counter trade one, but the daily shows a different picture. This illustrates the principle of fading the short-term trend in the direction of long-term trade which in this case is the daily one.
I am mindful of the news tomorrow which might affect the situation.
Also can't miss the round number and expect a quick bounce from there. The blue line is a 200 Daily EMA - and it's one of the most watched EMAs in the higher timeframes.
The plan is to enter at the level with a tiny stop loss for which I will use the 4H chart ATR.
Notice that on the 4-hour chart, this trade looks like a counter trade one, but the daily shows a different picture. This illustrates the principle of fading the short-term trend in the direction of long-term trade which in this case is the daily one.
I am mindful of the news tomorrow which might affect the situation.
Order cancelled