GBP/USD, 1-hour
Chart:
Long or Short: Long
Entry Point: Candle close above 1.6300, around 1.6320
Stop Loss: 50 pips (should be below 1.6300)
Profit Target/s: 1.6400
Reward-to-risk Ratio: roughly 2:1
Risk percentage: 2%
Indicators used: None
Trade Rationale:
The Pound rallied sharply from day lows during the EU session boosted by positive equity markets and good construction data. I normally don’t trade chart patterns, but I think the bulls are going to buy the pair up again. As you can see, the pair just formed a bullish flag/pennant, which is a bullish continuation pattern.
Trade Adjustments:
Only put the order when there is news about to come out. You basically want to ride the breakout on a news catalyst.
Read more: 301 Moved Permanently