GBPUSD Trading Analysis

 

@colibritrader

 

Dear traders,

The last two trading sessions were extremely profitable, especially for the ones that participated. I managed to get involved with a DAX trade, but not an AUDUSD trade.

I have mentioned this DAX trade on a few occasions on my Twitter feed and on my blog.

I have talked about the AUDUSD pair in my article HERE.

I managed to take a few short DAX trades, that returned quite a significant amount back.

I believe that even though this was a great trade, it is still just a small portion of my total equity. You should try to think of each trade as just one out of 1,000 trades.

Important: Always think of the NEXT 1000 TRADES!

It is a mistake to consider individual trades as great. On the other side, you should try to minimise losses and look at losing trades as just a necessity for reaching your ultimate goals as traders.

I have talked about that on multiple occasions, but find it immensely important and reckon it should be constantly reintroduced.

 

GBPUSD Trading Analysis

Today, I am looking at another currency pair- GBPUSD.

It looks like it might be forming a short-term top. There is a minor resistance area at around 1.4300 and a major resistance area at 1.4100.

Currently, price is just below both of those levels. There is a bearish engulfing pattern that formed on the daily timeframe.

It looks like bears are going to take advantage of this situation. The 4 Hour chart looks quite grim, as well.

GBPUSD Trading Analysis

As you can see from the chart above, I am waiting for the price to test the 1.4000 level. Then, depending on price action we might see the price rebounding back to the current resistance or breaking below the 1.4000 level.

For the time being, I might reconsider a small trade if price comes back to 1.4200, but this will really depend on price action.

Happy Trading,

Colibri Trader

 

p.s.

Check out my recent article on those 10 price action tips and how they can help you become better traders

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