GBP/USD Potential Short position
Updated
Since the price is fluctuating between the daily pivot point (1.235) and the EMA 90 (1.236), we can consider a potential short trade opportunity if the price breaks below the daily pivot point.
Entry:
If the price breaks below the daily pivot point (1.235), consider entering a short trade.
Stop Loss:
Set the stop loss slightly above the EMA 90 (1.236) to account for potential volatility. A reasonable stop loss level could be around 1.2375.
Take Profit:
Since you are aiming for a 3R (Risk-to-Reward) ratio, you can set your take profit level at 3 times the distance between the entry and stop loss. In this case, the difference is 0.0025 (1.235 - 1.2375). Multiply this by 3, which gives us 0.0075. Subtract this value from the entry price to find the take profit level, which would be 1.235 - 0.0075 = 1.2275.
Trade Execution:
If the price breaks below the daily pivot point and triggers the short trade, place your stop loss and take profit orders accordingly. Monitor the trade and adjust the stop loss to breakeven or trail it lower as the price moves in your favor.
Entry:
If the price breaks below the daily pivot point (1.235), consider entering a short trade.
Stop Loss:
Set the stop loss slightly above the EMA 90 (1.236) to account for potential volatility. A reasonable stop loss level could be around 1.2375.
Take Profit:
Since you are aiming for a 3R (Risk-to-Reward) ratio, you can set your take profit level at 3 times the distance between the entry and stop loss. In this case, the difference is 0.0025 (1.235 - 1.2375). Multiply this by 3, which gives us 0.0075. Subtract this value from the entry price to find the take profit level, which would be 1.235 - 0.0075 = 1.2275.
Trade Execution:
If the price breaks below the daily pivot point and triggers the short trade, place your stop loss and take profit orders accordingly. Monitor the trade and adjust the stop loss to breakeven or trail it lower as the price moves in your favor.
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