About meWe trade a system any trader can understand and profit from.
First we used the daily chart to identify price bias
Next we use the 4 hour chart to identify a signal candle for entry
Finally we use the 1 hour chart to find an entry and enter a trade
GBPUSD broke out of the upside trend line and the move down has stalled within previous structure.
Price now must close below 1.122000 to confirm further downward bias.
With the Supreme Court ruling on if the British Parliment must vote on a deal to leave the EU due mid-Jan we may see price trade sideways until the verdict is delivered.
We await confirmation of the break up with a rejection of a move lower within the range of the rectangle.
As we saw earlier there was a fake break out above the trend line which was met with a sharp move lower.
To begin buying we want to see price supported within the rectangle as it falls in line with the price structure of the previous breakout...
By commenting on key price action events the understanding of price action is easier.
Key focal points are clearly identifiable as so are opportunities which tend to present themselves around new lows, new highs etc.
By telling the story your trade bias should be better able to remain in perspective of what price is actually doing based on...
We continue to monitor EURO/USD for a breakout. As you can see price has not been able to settle above the key resistance line (Blue) however price has advanced in an upward direction finding support on the lower trend line (green).
We feel a catalyst is required for price to breakout and we have 3 opportunities this week for price to breakout....
The market is in a range with price action lacking a firm direction and clearly waiting for a fundamental factor to drive it in either direction. The FOMC meeting tomorrow will be such a driver and we have two outcomes below along with our rationale.
Outcome 1 - Rate Hike and Bullish Press Conference - 65% Likelihood: We favour a bullish statement...
We have closed our GPB/USD trade from yesterday in profit. The reason for the close is that price action has twice rejected the 1.27000 level and we now await a break of this level to resume our buy bias.
On another failed break we will consider selling at this level as buyers maybe exhausted and the market will need to drop before buyers re-enter....
This trade set up is for GBP/USD based off of the 4H chart.
Now we can see price action failed at the 61.8% Fib level on 3 occasions over 2 days. This failure supports the theory that price action is simply taking a break from moving up after a long period of gains.
The market appears to be rejecting any further decline past the 61.8% fib level...