GBP/USD In Range... Low Risk Trade
- GU made it to the top of the range today after a VERY strong bullish move.
- Most recent highs were liquidated but still holding our highs from last week.
- Session POC has been moved up to the top of the range indicating Big Money is back defending that level.
- Time based Volume also indicating this as we see the highest volume node at the high of the day.
- The bull run was completed, bottom to top in 8 hours. 8 Hour ATR was 52.8 pips, the run was 134.7, over-extending that ATR by 81.9 pips.
- Price has created a Double Top at our Resistance zone indicating a possible reversal.
- Looking for a retrace back to mid-range levels and see what happens there if we close or we keep holding.. only time will tell.
- If we do get stopped out of this trade, that will indicate that we've broken out of the range. Therefore, at that point we would be looking for a retrace back into that breakout zone for a continuation to the upside.
Shorting at the top of the range provides a low risk, high reward trade. Try to avoid taking trades in the middle of a range as like what happened today, price continued up very strongly and would have stopped out anyone trying to short in the middle.
- Most recent highs were liquidated but still holding our highs from last week.
- Session POC has been moved up to the top of the range indicating Big Money is back defending that level.
- Time based Volume also indicating this as we see the highest volume node at the high of the day.
- The bull run was completed, bottom to top in 8 hours. 8 Hour ATR was 52.8 pips, the run was 134.7, over-extending that ATR by 81.9 pips.
- Price has created a Double Top at our Resistance zone indicating a possible reversal.
- Looking for a retrace back to mid-range levels and see what happens there if we close or we keep holding.. only time will tell.
- If we do get stopped out of this trade, that will indicate that we've broken out of the range. Therefore, at that point we would be looking for a retrace back into that breakout zone for a continuation to the upside.
Shorting at the top of the range provides a low risk, high reward trade. Try to avoid taking trades in the middle of a range as like what happened today, price continued up very strongly and would have stopped out anyone trying to short in the middle.
Trade active:
This trade here we had to slightly adjust the stop loss placement as I noticed afterwards it was a bit too tight being we are on the pound after all and volatility is a little higher. Also, another determining factor was that it was getting late and I was about to go to bed, leaving the markets to do what it does during the London session. We moved stops up to 1.37650 to make it a 30 pip stop loss instead and made this trade a 1:2 rather than the 1:4 originally planned for. Still a decent RR factor, so it was justifiable.