At daily charts, GBPUSD is looking aggressively bearish, but at the same time it is approaching a major, multi-year support at 1.36.
It is logical to assume that GBPUSD will have another leg down towards 1.36 before we see any recovery in this market.
Next low risk short entry could be located at 1.4050. This level could serve a resistance as the price reacted to it few times in the past. (see screenshot).
There is an opportunity for bears around 1.4050.
This trade could be based on price action only.
Stochastic are not in favour of short positions.
Pivot point are not in strong resistance.
Date: 03/01/2016
Pair: GBPUSD
Price: 1.4050
Trade: Sell Limit
Lot Size: 0.03
Stop Loss in Pips: 100
Take profit in pips: 200
Risk of Equity: 2%
My Trading Checklist
ARE THERE MAJOR RISK EVENTS TODAY/THIS WEEK: Yes
Is the market risk off or on? SP500, DAX, NIKKEI. Are the down or up: Risk On
Is this trade with the trend?: Yes
Did I see it yesterday?: Yes
Is this a pullback measured by Fibs?: Yes
Am I buying support?: N/A
Am I selling resistance?: Yes
Is this entered during London’s session?: Not sure. Its a pending order
Did the price pulled back from 200MA on 15Min?: Yes
Are stochs extreme on multi charts?: No
Where is the price in terms of Pivots Points?: Support
Trading in Forex Exchange Market is VERY SPECULATIVE AND HIGHLY RISKY and is not suitable for all members of the general public but only for those investors who: (a) understand and are willing to assume the economic, legal and other risks involved. (b) Taking into account their personal financial circumstances, financial resources, life style and obligations are financially able to assume the loss of their entire investment. (c) Have the knowledge to understand Forex Exchange Market and the underlying assets.
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