Since that post, price moved further up, came back to retest the 1.4000 round number and bounced back to the upside. Price has used this support levels to spring board back towards the high of January of this year.
But just like in our previous post, we are still waiting for a break and close above the January resistance which will take price out of this period of consolidation which is now approaching its third month.
FX has been notoriously difficult to trade now since 2015. Trends are short lived and periods of consolidation often last several weeks, even months, following breakouts. This is not what we want. We want trends to emerge that offer strategic opportunities to compound.
These trends will at some point emerge. When they emerge is down to the forces of the market. When entry points, in the form of breakouts or pullbacks, do present themselves and your edge is met, that trade must be taken. The emphasis is always on the emergence of a trend and making profit. You must be in it to win as it only takes one solid trend to completely change the outlook of your trading account.
However, there is always the chance that your edge may not work out and for that reason, the allocated risk must always be small. For us, it is typically no more than 2%, often less.
Patience needed on the GBPUSD for now. A potential breakout is on the horizon but we need price to dictate that.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!