A GBP trade setup once again! This is my favourite pair to trade. The EUR has been much easier to trade lately, so it’s nice to finally find a trade with the GBP. No surprises from the MPC Meeting Minutes and lots of activity just in advance of the UK opening…”railroad tracks” candle formation.
With a lower swing high and no breech of the Asian session high, the pair set up as a short, with minimal risk, meeting our reward to risk criteria. A stop is placed just above the Asian session high. Price quickly moved down and tests the Asian session low. The trade was quickly profitable and we want to remove all risk from the trade, so we move our stop down to the close level of the candle that we entered on. If there is a whipsaw to the upside, we will be taken out without a loss. Price produces a lower high on the pullback test of the Asian session low, then heads down to our Targets. We progressively move our “take profit” down to just above structure of pullback highs and close the trade at Target 2.
After 2 sessions without being able to find a trade that meets our criteria, we are rewarded.
Let’s see what tomorrow brings.
Good luck with your trading.