GBPUSD Trading Setup

The ECB left rates unchanged at 0%. The QE program has not been extended beyond March 2017. We saw a mixed trading session today.

By: Colibri Trader

The trading setup from last time did probably get you stopped out. Although I have placed my stop loss too close, I believe that we might see a big surge of buyers, since we are just above multi-month support level. This means that although the entry was not extremely precise, it does not mean that this is not a turning point. I will keep on watching this pair for a better entry. The daily candle now is an inside day and it could be the right one. Still, I would prefer to not try to rush back into another long trade, but patiently monitor it. For the ones amongst you that are still long, I do not see a reason to close your long positions.

GBPUSD Trading Setup- Today’s trading setup is coming from the GBPUSD. I can definitely see a strong resistance level being hit. As the chart implies, we are just below a multi-week resistance level.  On top of that, we have two bearish candles fully engulfing the previous bullish candle. This is reflecting the overall bearishness and the possibility of a short term downtrend. I will be looking to enter in a short trade tomorrow if I see the price coming up to the level of 1.3318. I will be placing my stop just above the highs of the previous two sessions at 1.3450. My first target will be the level of 1.3200. The secondary level is 1.3000. I can understand if this is not the right risk:reward ratio for a lot of you, so you might as well consider waiting for another better trading setup in the near term.

Happy Trading,

Colibri Trader

p.s.

You might be very interested in my previous article on Support and Resistance that I wrote HERE