Hello guys, a simple but effective analysis on GBPUSD also know as Cable. This trade was taken by me personally due to numerous confluence coming hand in hand. Also a great risk to reward ratio was achievable .
The idea behind it was simple, huge bearish momentum pushed price to a very strong support zone; considering the tremendous amount of bearish pressure, price rejected this support zone tremendously which is best displayed on the 4 hour time frame. There was a huge wick present on the 4 hour rejecting this zone which enticed me to enter long with a favourable risk to reward.
Finally, with this trade there was no drawdown what so ever, straight into profits. Currently sitting at 50 pips in profits. I due however, intend to hold this trade until tomorrows New York session as I due believe the pair has more room to push to the top side. Note the GBP pairs have huge amounts of movement in pips throughout the day.
The idea behind it was simple, huge bearish momentum pushed price to a very strong support zone; considering the tremendous amount of bearish pressure, price rejected this support zone tremendously which is best displayed on the 4 hour time frame. There was a huge wick present on the 4 hour rejecting this zone which enticed me to enter long with a favourable risk to reward.
Finally, with this trade there was no drawdown what so ever, straight into profits. Currently sitting at 50 pips in profits. I due however, intend to hold this trade until tomorrows New York session as I due believe the pair has more room to push to the top side. Note the GBP pairs have huge amounts of movement in pips throughout the day.