Dear Successful Traders
The GBP/USD signal from yesterday has been triggered today. There was a major decline and then a reversal, which gave a bearish rejection on the daily time frame. It is a second bearish rejection in a row, which means that sellers are not ready to take a new low. We have a confirmation of yesterday’s signal and this means the GBP/USD might be ready for a small correction.
When it comes to the trading idea I have spotted for tomorrow, it is coming from the German stock market- DAX. We have seen some great moves recently from DAX and it has definitely been a great instrument to trade on an intraday basis. But since, we are concentrating on Daily only, I believe that today’s call is one that is ripe for you successful traders. For a lot of traders today’s market move might be interpreted as an indecision, but for me it looks in a different way. What I am seeing are two bullish candles engulfing the previous one. This is definitely a bullish signal. What a lot of traders would be seeing is a bullish rejection. But in my opinion, the price is not really rejecting the level of 10,000. It is more of a taking breath before a big move.
So, what is the daily trading setup- successful traders are asking. My answer is a clear buy. I believe that price might make a small correction towards the area of 9800 and the move upwards. So, any move down to this area would be considered a bullish signal. A stop should be placed under 9600.