Here is a breakout signal, are you going to take it?

Hey trader, hope you are cashing in pips so far this week…

I’ve got a signal to go long on the EURGBP, but before I get into the details, let me talk to you a little bit about a post I did last week.

Last week I wrote about the EURUSD, I thought it was in a bullish condition and it seemed like a good idea to go long.

Just after I published my analysis I received a few emails telling me: if I wasn’t aware of “things” in Europe, how could I recommend going long, it is going to fall like a rock, etc.

You see, I don’t trade the “why”, in fact, for me, I believe that the fundamentals are not important (for trading). Of course I keep track of them, but I never use them to take trading decisions.

There is one principle in Technical Analysis, which is: all information available in the market is reflected in price (included information about fundamentals). Ok?

By the way… the EURUSD did go up:

EURUSD

(Now I’m waiting to see what happens around the resistance level).

Ok, now to the EURGBP signal.

The EURGBP just broke through an important resistance level triggering a bullish condition. So I’m looking for long opportunities.

Here is the short term chart:

EURGBP

I’m waiting for the market to break the resistance level (upper green level), and setting my SL just below that level.

Here are the details:

Entry stop order: 0.8138 (still pending).
SL: 0.8118
TP: 0.8394

We’ve got a pretty good risk reward ratio here if the order gets triggered.

What do you think?

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Ganang Prastia

    Hi Raul Lopez
    Thank for the signal. I’ve placed my order.
    Last week I follow your signal to trade EURUSD long until resistance level 1.3066 and I make profit from it. Thank you.
    How long we can get 0.8394 (around 250 pips EURGBP) based on your experience trading this pair?

    • Raul Lopez

      Hey Ganang… well my friend, its difficult to say how long it will take the market to get there… I have no crystal ball… 

      But I’m confident about the direction, I think sooner or later the market should continue its way up! 

      Cheers,

      • Ganang Prastia

        Hi Raul
        It is going to hit SL
        Too bad for me will loss lot of money
        But I still want to learn about forex from you
        Btw can I take “free-one-coaching”? I am not US residents

        • Raul Lopez

          Hey Ganang, These things happen. The trade was looking ok, until the news announcement that brought the market down… 

          We need to learn with these things though, because it hppened with this trade and will happen more. Loses are just part of the game. 

          Have you heard about the pareto principle: 80-20 rule? 80% of your gains will come from 20% of your trades… 

          Cheers and good luck!