GBP/USD In Range... Low Risk Trade
Updated
- GU made it to the top of the range today after a VERY strong bullish move.
- Most recent highs were liquidated but still holding our highs from last week.
- Session POC has been moved up to the top of the range indicating Big Money is back defending that level.
- Time based Volume also indicating this as we see the highest volume node at the high of the day.
- The bull run was completed, bottom to top in 8 hours. 8 Hour ATR was 52.8 pips, the run was 134.7, over-extending that ATR by 81.9 pips.
- Price has created a Double Top at our Resistance zone indicating a possible reversal.
- Looking for a retrace back to mid-range levels and see what happens there if we close or we keep holding.. only time will tell.
- If we do get stopped out of this trade, that will indicate that we've broken out of the range. Therefore, at that point we would be looking for a retrace back into that breakout zone for a continuation to the upside.
Shorting at the top of the range provides a low risk, high reward trade. Try to avoid taking trades in the middle of a range as like what happened today, price continued up very strongly and would have stopped out anyone trying to short in the middle.
- Most recent highs were liquidated but still holding our highs from last week.
- Session POC has been moved up to the top of the range indicating Big Money is back defending that level.
- Time based Volume also indicating this as we see the highest volume node at the high of the day.
- The bull run was completed, bottom to top in 8 hours. 8 Hour ATR was 52.8 pips, the run was 134.7, over-extending that ATR by 81.9 pips.
- Price has created a Double Top at our Resistance zone indicating a possible reversal.
- Looking for a retrace back to mid-range levels and see what happens there if we close or we keep holding.. only time will tell.
- If we do get stopped out of this trade, that will indicate that we've broken out of the range. Therefore, at that point we would be looking for a retrace back into that breakout zone for a continuation to the upside.
Shorting at the top of the range provides a low risk, high reward trade. Try to avoid taking trades in the middle of a range as like what happened today, price continued up very strongly and would have stopped out anyone trying to short in the middle.
Trade active
This trade here we had to slightly adjust the stop loss placement as I noticed afterwards it was a bit too tight being we are on the pound after all and volatility is a little higher. Also, another determining factor was that it was getting late and I was about to go to bed, leaving the markets to do what it does during the London session. We moved stops up to 1.37650 to make it a 30 pip stop loss instead and made this trade a 1:2 rather than the 1:4 originally planned for. Still a decent RR factor, so it was justifiable.
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