Dear Trading Idea Traders
Yesterday’s trading idea started the day really strong. By midday, GBP/JPY was up already over 120 pips. Unfortunately, the pair did not hold on those levels for long. The pair came back to re-test the levels of 183.600. In the meantime, I have reduced my position, because the daily candle is a bullish rejection candle, which does not bode good for the future. I believe we might see some more profit taking before we are established in a good trade. That is why I prefer to reduce my position and re-consider trading this pair if the right conditions are met. For now what I am seeing is more indecision.
Today’s trading idea is coming from the GBP/USD. It was a turbulent day and the pair moved around 80 pips for the day. I believe that more buyers are waiting to prop up this pair and push the price to a new high really soon. The daily candle is a bearish rejection candle. It is a pin bar-like candle, which can mean only one thing- indecisive sellers and fresh optimism. I am looking to establish a position in this pair instead of building up one in the GBP/JPY. The setup on the intraday charts looks more suited for a higher push than the one on the GBP/JPY.
The entry parameters that I would be looking for to enter into a long trade would be:
Long entry at 1.5450. According to my intraday strategy, the stop of this trading idea should be placed just under 1.5380, thus minimising the potential loss. The primary target is the level of 1.5550. Then, it will come down to price action to decide whether we should hold the position longer or take profit.