What do you think about my long signal?

Pound dollar

Hey trader, what do you think about the market so far this week?

I’ve got to say, some currency pairs have been trading in a very clear condition, such as the EURNZD, USDCAD, NZDUSD and others…

These pairs have everything we need to trade them:

  • Clear S&R levels
  • Clear swings
  • Clear ranges

Everything…

But there are others though that arent that clear anymore…

For instance, last week I thought the EURUSD was trading in a bearish condition, but it retraced back…

What are your thoughts about the market?

Anyway… here is everything about my signal in the GBPUSD

GBPUSD long term analysis

Here is my long term chart:

GBPUSD Long term analysis

It looks like the GBPUSD already broke through an important LT resistance level and you know the rest…

Once the market breaks through an important level, it is likely to continue in the same direction at least until it reaches the next LT resistance level (in this case) which is at 1.6281.

And that’s everything I need to know to start looking for trade opportunities in the GBPUSD

  • I know that I’m going to trade the GBPUSD
  • I know what direction to trade (long)
  • Until when? (1.6281)

Makes sense?

Ok know on to the short term charts

GBPUSD long signal

Here in my short term chart:

GBPUSD Long Signal

It’s the third time the market tries to break through that level, so it’s obviously a very important level…

So I know that once the GBPUSD breaks through that level, it is likely to continue its way up at least until it reaches the next LT resistance level.

Therefore I’m going to set a pending order to go long above that level…

Here are the details of my trade:

Stop entry order (pending order): 1.5841
Stop loss: 1.5801
Take profit: 1.6241

What do you think about my risk-reward ratio? pretty good ha?

Your turn

What do you think about the market so far this week?

What about my signal? What kind of risk reward ratio do you use?

Please share your thoughts 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 .

  • Chad Hogan

    I think you can breathe easier now. LOPS 2 held with a big bar up to HOPS 2 after the news. Damn I missed it again!

    • Raul Lopez

      Now I can :)

      No worries, you’ll get the next one

  • Chad Hogan

    The only thing I think that will stop the GBPUSD is the 200 ma its currently under on the weekly chart. Its barely closed above it since may 2011. Also with the federal reserve unwinding still all up in the air it may just do that. You would of had a nice entry with that price and a 10:1 win/loss is awesome. Goodluck.

    • Raul Lopez

      Hey Chad,

      Nice to see you posting here!

      Right now I’m more worried about the tomorrows fundamental announcements than the EMA 200… the GBPUSD traded in a very tight range today, just as if it was waiting for “something” to happen…

      We’ll see what happens tomorrow!

  • Waqas khan

    very nice and simple analysis i think everyone should follow this.
    i like your style Mr raul. plz keep us informed about your every trading move.

    • Raul Lopez

      I’m glad you like it… Have a great weekend!

  • Ganang Al-Afghani

    Hi Raul. Where is other signal? EURNZD, USDCAD, and NZDUSD?? :D

    • Raul Lopez

      You didnt like the signal in the GBPUSD?

      • Ganang Al-Afghani

        I always follow your signal Raul :D But I am not clear about Kiwi right now.

  • Craig Hantke

    With EURUSD climbing and EURGBP most likely to stop at 84.0, I can only think GBPUSD will go down. I know not the most overwhelming evidence…haha

    • Raul Lopez

      heheheheh The GBPUSD is going up for now… we’ll see if it continues its way up… Hope it does so I can hold my trade over the weekend!

      • Craig Hantke

        Winner winner chicken dinner! haha – Good job Raul! (I got in some as well..;))

        • Raul Lopez

          I’m glad you did! Congrats!

  • Keeping Spirits

    I say the market is going to reverse and break below the former resistance turned support i can say that with 99% confidence

    • Raul Lopez

      Mmmm… the pound is going up!

  • Hi Raul:

    Your long term chart tells the truth.

    How we draw Support and Resistance.

    Clearly since arbitrarily approximately ~ July 18 the GBPUSD
    has been in an upward (long) consolidation channel varying between 1.5269 (not the lowest point but arbitrary talking point) and 1.5669 (an average high).

    So looking back and going back to approximately, June 17th.
    But if you look back further to say December
    14th, 2012. (my local high is 1.62969 – a recognized Resistance
    level) then I think your analysis is spot-on.

    My local high estimate is 1.58717 before turning south (that
    is going down). But I really do not think it will reach this level as yet. I
    think we are played out (running out of momentum) 1.58521 was my top (high); I conservatively see a dip down to 1.54423.

    It could be 2-weeks or 2-months or more to reach 1.6281 and
    I feel that the trend is in your favor. Perhaps a breakout (by my calculation)
    1.58717 then we will be well on the way to the resistance of 1.6281.

    Perhaps I am just to conservative. It is just the way I read
    the long term chart.

    Blessings of Good Trading,

    Carl Menako

    • Raul Lopez

      Hey Carl,

      Thank you for your through analysis… I see where you are getting at…

      I agree with you about the Dec 14th swing highs/lows, but I dont take them into consideration because they are just part the market swing (i.e. the market didnt change direction, it just retraced)…

      Let me know what you think about this…

      Thanks again for your analysis Carl!

  • Said

    i think the modern market is very volatile to trade in a such traditional way but good plan though.

    • Raul Lopez

      It’s not traditional… it’s called simple

      • Said

        you’re right. i’m short on it and hope it goes again my way. 1.5841 is my stop loss.

        • Raul Lopez

          Good luck Sir!

          • Said

            for you too, thank you.

          • Said

            i’m out, hope you good ride and take some profit at 1.589.

          • Raul Lopez

            Thanks Said, if it keeps moving on my favor I’m going to hold it over the weekend…