GBPUSD: Getting closer to the ST support level
The GBPUSD is trading around an important long term support level, and as you already know, when the market trades around an important LT level, it creates a short term range, in this case the pound-dollar’s range is from 1.6202 to 1.6072:
So basically what I’m waiting for is a breakout of either extreme of the range to start looking for a trade opportunity.
Here is my trading plan:
If the GBPUSD breaks the ST support level, I will be looking for short trade opportunities. My next LT support level is at 1.5806
If the GBPUSD breaks the ST resistance level, I will be looking for long opportunities (my next LT resistance level is too close, so need to make sure the trade has a good Risk-Reward ratio).
If the Pound-dollar keeps trading in between both ST levels I will do nothing.