I’ve placed a buystop at 2.0448, stop loss at 2.0418 (30 pips)
Reason:
Following momentum on the 4hrs MACD, trendline on the top seems to be easier to break. And it’s still heading away from the 200EMA/SMA.
Also look out for:
The Industrial Production stats which will be released in 2 hours time. If there’s any chance of an open position, close it before the news or at least place your stop loss level properly.
Analysis by Tim Clayton – Production Shock Required To Trigger Sterling Reaction
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Hey Jude,
Don’t mind if I drop in here to say a couple of words.
First things first: MACD crossing the waterline upwards, price above 200 EMA/SMA so the first thing you looked for was a breakout to upper side. That’s a good technical analysis, but still insufficient to get you a winning trade. What do I mean?
#1: Both 31st June and 2nd August highs are around 2.0379. Two identical Daily highs make up a nice resistance, and if you’re looking to go long, 2.0385 is the best price to get in.
#2: Fibonacci retracements: taking 24th June as the Low and 30th June as the high (yes, I’m looking at upside-down retracements here), 61.80% retracement level is at 2.0471.
From the previous resistance at 2.0379 to 61.80% (high reversal or retracement probability around this Fibonacci number) at 2.0471 there are only 92 pips safe pips to target in your trade, more like 50 pips if you want to make it really safe. Your entry was at 2.0448 and that was too late. Next time pay more attention to resistance and support levels, they help a lot.
Regards,
Dan
Thank you Dan. I’ll etch them in. Now, when are you providing signals?