In today's blog post I want to take the time and talk about my last trade which was long GBP/USD. Since beginning of this month you could have seen me talking in details about all my trades in my blog and I hope this will give you a perspective on the reason and why I've decided to take that particular trade.
This trade is a particular setup that I usually take during London open when the market starts moving strong in one direction and than it quickly reverse, so you have to fade that quick move that usually is headed right into some support/resistance or previous day high/low. Also the chart suggested that there is lack of liquidity above current market price so the line of least resistance was to the upside. This market inefficiency was produced during the NFP release and I was expecting the market to fill in the gap.
Even though there is a strong probability that it may continue higher I wanted to luck in the profits, which is not a bad start of the week.
Best Regards,
Daytrader21
This trade is a particular setup that I usually take during London open when the market starts moving strong in one direction and than it quickly reverse, so you have to fade that quick move that usually is headed right into some support/resistance or previous day high/low. Also the chart suggested that there is lack of liquidity above current market price so the line of least resistance was to the upside. This market inefficiency was produced during the NFP release and I was expecting the market to fill in the gap.
Figure 1. GBP/USD 15 Minute Chart
Even though there is a strong probability that it may continue higher I wanted to luck in the profits, which is not a bad start of the week.
Best Regards,
Daytrader21
