Short Term Bearish trade on GBP USD

4 天前

On morning of 8th Jan, the crucial 1.2507 level was again broken on the downside with a large candle. Now, The sentiment has turned bearish again. A lot of short positions must have built up after this break. Some may have pushed their stop losses to 1.2493 levels now and many would still be around 1.2507 levels.

My guess is that there will a temporary move up towards 1.2507 to gobble up all the stop losses of people who have gone short now. But after that it will carry on the downward movement towards 1.2360.

I will enter the trade once the price gets rejected around 1.2500 levels. Stop loss 1.2535 (~30 points) and target 1.2360 ( ~150 points). With 1:5 RR Ratio , this will be a good trade to take.

3 天前

取消訂單

The trade did not materialize. The stop loss hunting I was expecting, did not take place and the price moved directly towards the 1.2360. The good part was - there was no loss since the trade never got triggered.