GBPUSD Long
Updated
Bounce from September low 1.27850 was expected as it did on Friday (Friday’s low 1.27800). Is it reversal with nice engulfing candles or just short covering on weekend? For that we have to wait price to trade above the descending channel.
Trade Idea :
For me I’ll like to long from current levels by risking 1% of my portfolio. There are three reasons for that
1. Risk is defined stop below Friday’s low.
2. Reward is pretty good if it’s going to be a bottom.
3. Being a contrarian trader one should take a chance on engulfing candles at major support.
For short sellers 1.28600-700 is a nice area to short with stops above the channel.
Trade Idea :
For me I’ll like to long from current levels by risking 1% of my portfolio. There are three reasons for that
1. Risk is defined stop below Friday’s low.
2. Reward is pretty good if it’s going to be a bottom.
3. Being a contrarian trader one should take a chance on engulfing candles at major support.
For short sellers 1.28600-700 is a nice area to short with stops above the channel.
Trade closed: stop reached
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