Today’s price action setups review is rather short – and what is more focused only on pound sterling. It is because markets are quite boring before the weekend (holidays in lots of European countries) and only GBP is quite volatile (after dovish Carney speech).
GBP/AUD
Price broke the support decisively and is approaching another, really important level which may stop the downfalls. Trading on this cross from support near 1.7830 to resistance between 1.83-1836 gave opportunity to earn, so now it is worth to observe this very level and look for potential entry positions (of course longs).
GBP/CHF
After falling below the support and pin-bar candle formation, bulls attacked yesterday. Now we can consider long positions – there are three ways to open them:
- Purchase after breaking above maximum, SL below minimum,
- Purchas after breaking above maximum, SL below 50% retracement of a candle (better RR ratio than in the first case),
- Buy limit at 50% retracement of a candle, SL below minimum. Better RR ratio than in the first case, and safer SL than in the second one. But there is still a risk that market will not correct the price and we will be left without a position in developing trend. Personally, I prefer this method – so I activate buy limit order at 50% retracement of this candle.
GBP/USD
Similar situation when it comes to Cable. Yesterday doji bar formed and today we can look for long position entering signals This position will be a trend-following one, because GBP/USD since 2013 is increasing almost all the time.
