GBPSEK is trending hard to the downside, however as per the chart, price is approaching a very strong weekly Support line.
While I accept this is a low probability trade (likely get stopped out as im not willing to sustain massive losses), the Risk/Reward ratio is significant enough to warrant a little speculation.
The ideal set up is;
Reasons I took this trade:
- Double bottom formed on the larger timeframe / Bounce of strong resistance.
- Pair is oversold on many timeframes.
- Tight stop loss / Good R:R (Risk:Reward Ratio)
- Strong BULLISH candle on 1h timeframe ( Piercing Line Pattern & Possible Bullish Hammer )
- MACD crossover
Entry : 11.44453 (roughly)
Stop Loss: 11.39150
Sell limit on this pair . Price currently at support level , I expect a move upward to the marked lines. Last week rejection might be a aggressive entry . However with fundamentals in play we can see price break down without touching our first entry & second . But patient & let price present itself .
These two are called reversal patterns on GBPSEK. It is about the shape of the pattern. This is experience-based knowledge. This does not mean the most recent pattern is bound to reverse. This is not a prediction. It is a probability estimate.
GBPSEK is a very volatile instrument which is much avoided. How strange cuz volatility is needed to make profits (and...
In this video I look at some serious volatility in GBPSEK and how you can approach volatility differently.
Exotic pairs are very wild indeed. But fear them not. They can teach you much about how to take positions.
Last post: May 2nd. See chart .
Review: A possible breakout and a close above the resistance zone around the round number 12.0000 was on the horizon.
Update: Price failed to breakout and, instead, pulled back to the daily 50SMA.
Conclusion: Price is now showing strength again. A breakout above is still required.
Any comments or questions, do not hesitate...