GBPAUD Long Signal

Slow Market

Hey Trader, the market has been slow this week hasn’t it?

Yesterday I’ve got an email from fellow trader… he was asking me if there was something wrong with the market, he thought that it was so slow.

And he is right, the market has been slower than usual, but, is it something we should be alarmed with?

Of course not.

There are weeks like this one, the only thing that we need to do is to be extra careful with our trades, you dont want to be trapped in a trade that barely moves, do you?

So focus in the levels and pairs that have the highest probability of moving in one direction over the other.

Plus, let me tell you something… there is always something:

  • The market so slow
  • There is a lot of volatility right now
  • The market behaved in unexpected ways
  • There was an important announcement
  • Someone said something about the market

And so on and so forth… So, make yourself a favor and focus only in the pairs that have:

  • Clear S&R levels
  • Clear swings

And you’ll be fine.

Sounds good?

Ok, now on to my signal…

GBPAUD Long signal

As I said before, you need to make are you are trading the right currency pairs, the ones that have a clear market condition, clear swings and clear S&R levels.

And in my point of view, one of them is the GBPAUD.

Based on the LT charts, it is trading in a very clear bullish condition, it was clearly rejected from an important support level. Take a look at it and you’ll se exactly chat I mean.

Ok, so that means that I’m going to be looking for long opportunities in the GBPAUD.

Here is the short term chart:

GBPAUD Long Signal

I’m going to take the breakout of that range. My entry buy stop order is at 1.8663 + spread.

I know some of you are not that comfortable taking breakout trades, but let me tell you why this one is different.

First, we are already in a bullish condition, that means that if it is going to break either extreme of the range, its more likely to break the upper level.

We are also far away from any LT level, and there is where most false breakouts occur, so we are safe there.

Your turn

Do you agree that this week has been slower than usual?

What currency pairs have you been trading this week?

What do you think about my signal? Are you going to take it?

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 .

  • pascal81

    So Raul where would you place ur stop loss In such a trade ?

  • pascal 81

    what do you think ?

    • Raul Lopez

      Please see below my comment…

  • pascal 81

    nice breakout opportunity Raul but i prefer to place my buy after the market retest the resistance line, i have been watching all major currencies and i find a sell trade on eur/usd entry blue line,

    • Raul Lopez

      I dont like the way the EURUSD has been trading in the last few weeks… I think there are others with clearer condition… like the GBPAUD…

  • Wojtek

    Hi Raul, Perhaps I should have traded last night at 0:00 GMT ? It shoot up 75 pips overnight. Never mind I just entered long trade now @ 1.8642, maybe 1.8663 is setting entry point a bit too high? Just wondering, I think you were just careful about oscillations around 1.8642 green line, right? Anyway I took the risk!

    • Raul Lopez

      Are you still holding this trade Wojtek?

      • Wojtek

        No, not any more. I was careful and set TP = 1.8680 only. Small profit of 38 pips was hit when I was away from my PC

  • tp

    Hmm … I must have jinxed the position. Sorry guys!

    • Raul Lopez

      No worries…

  • Axel

    I think The market is in acumulation of sell or buy orders and then move for profits

    • Raul Lopez

      Well Axel, based on how the GBPAUD has been trading in the last week or so you are absolutely right… I hope those buyers accumulate more orders… We’ll see…

  • Craig Hantke

    what if the spread is floating?

    • Raul Lopez

      Add the floating spread :)

      • Craig Hantke

        could be upwards of 40 pips

        • Raul Lopez

          wow…

  • Arnoldo Perez

    –New to FOREX– Hi, Raul. some days ago I opened a long position for GBPAUD with limit 1.8994 so, I need to wait maybe for a few more weeks, but my nerves are not destroyed everytime I take a look to my trading panel. – At the same time, I opened a short position for AUD/USD with limit 0.8696. –
    Good news: it’s a practice account. It’s just learning, for now.
    This is my first posting. Thanks for your ideas.
    from TX.

    • Raul Lopez

      No Problem Arnoldo… If the GBPAUD breaks that resistance level you’ll have a great trade there… where do you plan to take profits?

      And short on the AUDUSD… that one doesnt make sense to me, take a look at the daily charts, it is more likely to continue its way up…

      Dont forget to trade your demo account as if it was your live account…

      Good luck Arnoldo!

      • Guest

        Gracias, Raul.
        I went for AUDUSD just to test its negative reciprocity to GBPAUD. Look at this. I hope you can see clearly these daily charts for both of them. (GBPAUD chart on top, AUDUSD bottom.)

        • Raul Lopez

          Hey Arnoldo, yeah, I see what you mean… the AUD is the base currency in one of them and the counter in the other one…

          But its all relative, for instance, the AUD could be stronger than the USD, and at the same time weaker than the GBPAUD, if that’s the case, both of them would move up…

          But you have a good point though… good luck!

  • Emile Wolfaardt

    I’m following!

    • Raul Lopez

      Welcome aboard…

  • tp

    Thanks for sharing! One question, where would you set your stop loss?

    • Raul Lopez

      Hey Tp, it should be placed around 25 pips below the upper green level…

      By the way, whats your name?

      • tp

        This is Ting Ping. :)

        • Raul Lopez

          Alright.. Thanks TP, I know you are a regular contributor and thought to ask you…

          Thanks again…

          • tp

            Sure thing. I hope to visit you one day. “)

          • Raul Lopez

            Sure thing TP…

  • Waqas Khan

    very interesting. thanks

    • Raul Lopez

      Wow, that was fast Waqas hehe!

      We’ll see what happens…

      • Babatunde Samuel

        I want u to be my mentol I’m just a beginner

        • Raul Lopez

          Sure thing…