EUR/GBP, Daily
Long or Short: Long
Entry Point: Once the EU session opens on monday
Stop Loss: 120-pip TS
Profit Target/s: None, since this is a long term, positional trade.
Reward-to-risk Ratio: Will depend on the exit.
Risk percentage: 3.5%
Indicators: 100 SMA, ADX (14)
Trade Rationale:
With the ECB ready to buy unlimited bonds while keeping them sterilized, I think we’ll see optimism in the market for about 4-6 weeks. I think this is the perfect time to take a position trade and see how far up price will go.
Technically, the pair is trending up. The ADX is climbing and the 100 SMA just broke.
Trade Adjustments: None