Long signal in the best currency pair to trade right now

GBP and AUD flags

I’ve always thought that the key to trading successfully is how you handle the long term charts…

It’s not that you have to trade off the long term charts, but you need to see what is going on in the longer timeframes…

Even if you trade off the 5 or 15 minutes chart… it pays to do some analysis on the long term charts.

Have you tried it?

It doesn’t even matter what system you use… You can use:

  • Fibonacci
  • Technical indicators
  • Price action
  • The moon cycles
  • Your cat

If you trade always in the direction of the market condition, sooner or later you’ll have better results…

Here is what you need to do:

GBPAUD long term analysis

GBPAUD Long term analysis

In this chart it’s clear that the GBPAUD is trading in a bullish market condition.

And if its going up, the best thing we can do right now is to look for long opportunities right?

And that’s exactly what I’m going to do.

GBPAUD short term analysis

Here is my short term chart:

GBPAUD Signal

Its got clear ST S&R levels, I’m a little worried about the level at the top though, because it has not been confirmed yet (its got small rejections on the second peak).

But that’s why I’m going to use a pending order and if my trade gets hit, I will get the confirmation that I was looking for.

Here are the details of my order:

Entry stop order: 1.7436
SL: 1.7310
TP: open target

The next LT resistance level is 753 pips away from where the market is currently trading at, so we still got plenty of room before the market gets there…

I know I know… the SL is too wide, but remember regardless the amount of pips I use on my SL, I’m always risking 1% of my account…

So if my SL is 40 pips wide its the same as a SL of 120 pips… it mean 1% of my account.

Sounds good to you?

NOTE: remember there is an important announcement later today (FOMC minutes), is if you are going to take this trade, you are going to have to monitor it during the announcement.

Your turn

What do you think about my signal?

Are you currently trading the GBPAUD?

What kind of SL do you usually use?

Let me know in the comment section.

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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 .

  • Angel Tee

    Raul, this is a low risk entry for those who missed the early long.
    Thumbs up! :)

    • Raul Lopez

      Good luck Angel!

  • Said

    Hi Raul,
    TP at 1.747-1.748
    the pair is gonna retrace below your SL.

    • Raul Lopez

      You were saying?

      • Said

        ;)

        • Raul Lopez

          No sir, I didnt… that was too fast.

          • Said

            there are a weekly and a monthly strong resistances at that level.
            besides, i wouldn’t trade this pair with less than 400 pips SL.
            managing a breakeven is also a smart way.

  • Waqas khan

    hmm very helpful thank u Mr Raul

    • Raul Lopez

      Glad it was useful Waqas… Did you take it?

  • Craig Hantke

    I do like the overall trade strategy, but agree with you that the short term SF zone is not overly tested. Nice analysis Raul!

    • Raul Lopez

      Thanks Craig,

      My order has already been triggered, we’ll see what happens!

      Good luck!

      • Craig Hantke

        Looks like it got rejected pretty hard. Still, direction is up

        • Raul Lopez

          It did… but yes, I’m still bullish here.

          Right now I’m waiting for the GBPAUD to settle down, and once we get new ST levels, I’ll try a new long… I’ll probably have to wait until monday though…

          We’ll see!