GBP/USD: 4-hour
Short
Long or short: Short
Entry point: 1.6300
Stop loss: 100-pip trailing stop initially at 1.6400
Profit target: 1.6100
Reward to risk ratio: 2-to-1
Risk percentage: 1%
Indicators used: Trend line and Fibonacci
Trade rationale:
There’s a falling trend line on the 4-hour chart and the 50% Fib level is in line with the 1.6300 major psychological level. Weak NFP figures could trigger my trade but pound weakness is likely to prevail for the next week.
Trade adjustments:
I’ll probably add another position at 1.6200 if the move is strong.