Live Trade – GBP/USD

Filed under: Live Trades |

There seem to be a lot of good trade setups on the GBP/USD pair at the moment, and I put another order in on Friday, which has now, once again, been filled. I would like to talk you through this latest trade setup right now, and to update you on how the trade is progressing.

 

Figure 1.

Figure 1.

To begin with, take a look at Figure 1, which shows the daily chart for the GBP/USD pair. Our entry for this one was another pin bar that was coming off of a short-term level of support/resistance (marked with a horizontal red line). Our long order was set at a 50% retracement of this pin bar, with an initial stop loss placed just a few pips below the low of the pin bar, and a target set of four times the risk. This order has now been filled, and I have moved the stop loss to breakeven – effectively making this now a risk-free trade, which is always a good position to be in.

 

What you can see from this chart is that, over the last five trading days, each daily low has been higher than the last. I would also note that the 8-day exponential moving average is about to cross above the 21-day exponential moving average, which is also a very bullish signal. This seems to be a good pair to be long on at the moment, and the fact that we have managed to get in on a risk-free trade (currently in profit to around two times the risk) is very good indeed. I would estimate that the odds are currently just in our favour on this right now (at around 60-40), which is what we want, and with a best case scenario of a 4% rise on our bank, and the worst case, a breakeven trade – this is the kind of setup that I want at the beginning of a new trading week.

 

 

 

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