Today’s Trading Idea
The trading idea from yesterday has played out quite well. The ones of you who are in this trade are probably already 200 pips in profit. As I said yesterday, there is a great bullish momentum in this trend. The initial target is almost met and now it is down to time and patience in order to squeeze the most of this trade.
Today’s trading idea is more about FX again. It has been a great day for the European markets and the EUR/USD has moved more than 300 pips. But my trading idea is coming from another place. What I am seeing today is a bearish engulfing pattern on the GBP/USD pair. It is actually a bearish engulfing pattern that that consists of three candles- one is engulfing the previous two. It is a good entry point for a short trade. We are in a major downtrend and all bearish signals are more than welcome.
The entry parameters for this trading idea are as follows:
Short trade at 1.5050 with a tight stop just above 1.5200. The first target for this trade is at 1.4500 and then potentially 1.4000. It depends on price action, but for now such a target looks realistic.