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:
(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:
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).
We’ve got a pretty good risk reward ratio here if the order gets triggered.
What do you think?