GBPUSD was making a series of HHs and HLs aligned with the concept of DOW THEORY and the RSI graph near the current price level is also consistent with the price point trend which shows no divergence. A bullish Flag continuation pattern is also identified near the current price level further strengthening the case for a possible trend continuation.
My entry point for this trade is 1.26806.
SL is set at 1.25994 and my TP is set at 1.27629.
To take advantage of this trend reversal, I have applied another trade but this time TP 2 is set at 1.28452 which gives me a risk-to-reward ratio of 1:1.5 for my 2 trades.
OVERALL RISK: 2%
{
(TRADE 1 : 0.11 : approx USD 90 RISK),
(TRADE 2 : 0.11 : approx USD 90 RISK)
}
REWARD: 3%
{
(TRADE 1 : 0.11 : approx USD 90 REWARD),
(TRADE 2 : 0.11 : approx USD 180 REWARD)
}
My entry point for this trade is 1.26806.
SL is set at 1.25994 and my TP is set at 1.27629.
To take advantage of this trend reversal, I have applied another trade but this time TP 2 is set at 1.28452 which gives me a risk-to-reward ratio of 1:1.5 for my 2 trades.
OVERALL RISK: 2%
{
(TRADE 1 : 0.11 : approx USD 90 RISK),
(TRADE 2 : 0.11 : approx USD 90 RISK)
}
REWARD: 3%
{
(TRADE 1 : 0.11 : approx USD 90 REWARD),
(TRADE 2 : 0.11 : approx USD 180 REWARD)
}