GBP might be getting ready for a big drop
As we see on this study, cable has been trending down, and recently engaged in a lateral price pattern that's taking out a lot of retail traders who entered longs or shorts with bad timing.
This movement calls for an explosive breakout, and I'll be watching for the beginning of it to capitalize on the move.
My target is a daily close below the resistance line, since we haven't seen any real volume action when outside that price range, I assume that's where bigger players have closed shorts before, and now will enter short again. It's a good idea to hedge the short position with a long if price breaks out over the resistance line, always let your winners run more than your losers and you'll be fine (I know I've struggled with that in the past).
Trade safe people,
Cheers.
Ivan.
This movement calls for an explosive breakout, and I'll be watching for the beginning of it to capitalize on the move.
My target is a daily close below the resistance line, since we haven't seen any real volume action when outside that price range, I assume that's where bigger players have closed shorts before, and now will enter short again. It's a good idea to hedge the short position with a long if price breaks out over the resistance line, always let your winners run more than your losers and you'll be fine (I know I've struggled with that in the past).
Trade safe people,
Cheers.
Ivan.
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