Thought I’d share a trade idea I spotted. It’s a bit simple, though it has a lot of potential if we build upon it. Let’s see.
GBP/USD 4-hour
Long or Short: Short (but stop and reverse if stopped out)
Entry Point: 1.5500
Stop Loss: 1.5600 (you can make this tight, but i suggest keeping it as is to give trade enough room to breathe)
Profit Target/s: 100-pip trailing stop
Reward-to-risk Ratio: Depends on how price moves after the entry.
Risk percentage: 5%
Indicators used: RSI (9)
Trade Rationale:
This is a simple technical trade since the pair is overall on a downtrend. Just short at the confluence of the trend line and the 1.5500 level.