GBP/USD 4-hour
Long or Short: Long
Entry Point: At the open of next week (1.5845)
Stop Loss: 100-pip TS
Profit Target/s: 1.6000 (or none, if you want to let the trade run)
Reward-to-risk Ratio: Depends on the exit
Risk percentage: 2%
Indicators: 200SMA
Trade Rationale:
This is a technical play on GBP/USD. There were a couple of significant things that happened with GBP/USD’s price action on Friday.
1.) The pair broke the long-term falling trend line
2.) Price closed STRONGLY above the 200 SMA
3.) The bullish candlestick seems more like a reversal of the trend than a mere retracement
Trade Adjustments: None