As the GBP rose to test its Asian session high, it ran into sellers and a short entry sets up. With a 13 pip stop loss and 76 pips to our Target 2, the trade offers a very attractive reward to risk ratio.
Price moves down and long lower wicks begin to appear near the Asian session low. We tighten our profit stop and note how buyers are entering in the area of yesterday’s low. We allow for price to retest the Asian low level, but as it climbs above it – our trade is closed at our profit stop.
This pair has been ranging recently in advance of its next large move. We are watching it closely.
Good luck with your trading!
Back tomorrow if we find a trade.