Waiting For A Breakout In GBPUSD
Updated
GBPUSD could go either way, although the long-term trend is to the downside but one should not rule out a move higher. As traders our role is not to GUESS what the market will do, rather it's to recognize what the "smart money" is doing and simply ride their backs.
With that said we will be ready to take a swing trade in either direction. We want to see a close above the green downtrend line or a close below the red uptrend line. Our algorithm will be tracking this pair as well, we would like to see an 85% or higher probability of the move in the same direction as the break. The closer this pair gets to the apex of this triangle the more powerful the move can be once the break happens.
As of 04/05/2016 our algorithm is indicating this pair will essentially stay within this triangle for the next week or so, but be ready as the algorithm will update every day. Please see the snapshot below:
imageshack.com/i/pmEyU2S6p
imageshack.com/a/img922/4466/EyU2S6.png
With that said we will be ready to take a swing trade in either direction. We want to see a close above the green downtrend line or a close below the red uptrend line. Our algorithm will be tracking this pair as well, we would like to see an 85% or higher probability of the move in the same direction as the break. The closer this pair gets to the apex of this triangle the more powerful the move can be once the break happens.
As of 04/05/2016 our algorithm is indicating this pair will essentially stay within this triangle for the next week or so, but be ready as the algorithm will update every day. Please see the snapshot below:
imageshack.com/i/pmEyU2S6p
imageshack.com/a/img922/4466/EyU2S6.png
Note
On 04/05/2016 GBPUSD closed at the short-term (red) uptrend line. Today, 04/06/2016 will be critical price action as we are looking for a close below this trendline. Let's see what happens.
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