GBP USD short trade

[trustFX]

I like this short trade as the charts look really good ... that might makes it dangerous

P: 1.6029
SL: 1.6150

Targets are

1.5870 (previous swing low)
1.5790 (lower range support)
1.53 (about 100% extension from neckline and also a former consolidation zone)

I posted more details incl. charts here: GBP USD Short Opportunity

[cadarkitek]

I like this entry. 4H trend line test and also a double top formation at the TL.

[wangzhongpeng]

from what you say in the analysis:
you going in base on the weekly, daily, 4hrs chart. and all chart is trending down. then you decide open position, actually your first profite already hit, so the things you are waiting now were the second and third profite. from what i see, it's a good trading. but may i have some question:
I just what to confirm with you, before you sell the JBP/USD, have you take a look the 30mins charts. because i really don't know how to trade sometimes. always loss money one. thanks.

[trustFX]

Originally Posted by wangzhongpeng

from what you say in the analysis:
you going in base on the weekly, daily, 4hrs chart. and all chart is trending down. then you decide open position, actually your first profite already hit, so the things you are waiting now were the second and third profite. from what i see, it's a good trading. but may i have some question:
I just what to confirm with you, before you sell the JBP/USD, have you take a look the 30mins charts. because i really don't know how to trade sometimes. always loss money one. thanks.

For a this type of trade I expect to hold the position about a week. So I only looked at the weekly, daily and 4hr chart. For the entry it was also important that the price was at a resistance (upper end of the consolidation channel).

The first TP target has been reached same day. I wait and see what the price is doing now. Will it consolidate or continue going down? I definitely will not allow this trade to turn negative. I moved the SL to 1.60 for now.

[wangzhongpeng]

Good analysis, thanks for your reply. actually i am also playing this chart recently, but i only hold the position a few hours. so normally i was see 30mins charts.

[trustFX]

closed the position at 1.4790

I will watch the Uk data release on Wed 8:30 gmt and might enter again. Also considering EUR/GBP long bc the EUR seems to continue to perform better than USD.

[Davidee]

Originally Posted by trustFX

I like this short trade as the charts look really good ... that might makes it dangerous

P: 1.6029
SL: 1.6150

Targets are

1.5870 (previous swing low)
1.5790 (lower range support)
1.53 (about 100% extension from neckline and also a former consolidation zone)

I posted more details incl. charts here: GBP USD Short Opportunity

These are pretty much my thoughts on the pair too. I'm still bearish on the GBP and would consider this a short term top, if it goes much higher than it currently is though I'll probably reverse my opinion.

[trustFX]

Fundamentally I am still bearish on GBP. And as long as GBP USD is lower than 1.6130 the downtrend stays intact as well.

However, with equities and gold going higher almost every day, the USD is weak. Can this continue forever? Most likely not, but I am not the one trying to catch the reversal. Too expensive!

Therefore I entered long EUR GBP yesterday @0.9320.

[Tomo1]

it s hard to go against the trend:
'The trend is your friend'

[trustFX]

yep, that long trade was painful. Got caught on the wrong side.

A bit more on that here: Trading Blog: GBP Panic


I stand aside from GBP for a while and wait until things settle down. Wouldn't mind if EUR GBP goes back to 90 (or 88) ... so that I can go long again