GBPUSD: Short Trade from Resistance
The price broke the trend line of the price channel and retested a new resistance zone. It gives a solid bearish signal and a new trade opportunity for shorting.
It is possible to use the price reversal signal to open short trades with stop orders above the local swing high and profit target at the support zone. The alternative short trade is based on a breakout signal below SMA200. This trade will give more reliable signal but a worse risk-reward ratio.
Risk per trade must be no more than 1-2% of the capital.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
It is possible to use the price reversal signal to open short trades with stop orders above the local swing high and profit target at the support zone. The alternative short trade is based on a breakout signal below SMA200. This trade will give more reliable signal but a worse risk-reward ratio.
Risk per trade must be no more than 1-2% of the capital.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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