2 Possible Trades: EURUSD and GBPJPY

Hey traders! Hope everything is going well!

You know I always try to find two things in the instruments I trade:

  • A clear market condition
  • and a good profit potential


When I talk about the market condition, I mean clear S&R levels, when we have both, clear short term and long term support and resistance levels, we know what the market is going and most importantly, what the market is likely to do.

And for obvious reasons, its very important to trade the instruments that have the best profit potential, you want to increase your risk-reward ratio on each trade. At the end, your over all risk reward ratio will determine how well you’ll do.

So if you look for those two things, you’ll get good results on the long run.

Here are my two possible trades:

GBPJPY Long Signal

The GBPJPY is trading in a very clear bullish condition… just look at the daily chart and you’ll see that was recently rejected from an important support level around 181.34…

This tells me that the GBPJPY is likely to continue its way up until it reaches its next LT resistance level which is at 186.60.

So I’m going to keep looking for long opportunities.

Anyway, here is how the hourly charts looks like:

GBPJPY 1H

Here is my strategy:

Stop Long Entry : 185.23
SL: 184.51
TP: 186.46

EURUSD Short Signal

The EURUSD on the other hand is trading in a very clear bearish condition… just look at the daily chart and you’ll see it’s got bearish pressure around the resistance level.

I trade based on a very simple logic, most of the time, the market moves from one level to the other.

Since it looks like its being rejected from the resistance level, it is now likely to continue its way down until it reaches the next support level which is at 1.1134

And here is the short term chart:

EURUSD 1H

Here are the details of my order:

Sell stop entry: 1.1292
SL: 1.1358
TP: 1.1162

NOTE: Both are still market orders, the still needs to move in the direction of the trade in order for them to get triggered.

Your Turn

What currency pairs are you trading this week?

What do you think about these two possible signals?

Share your thoughts.

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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 .

  • JiaNianTan

    Hmm, but why not you enter a sell trade at the pullback near the resistant level? and also why not you place a buy limit at the pullback near your support level at the first chart?? This is because your risk would be lower perhaps as the stop loss will be nearer

    • Raul Lopez

      Hello JianNianTan, yes… you are definitely right about the tighter SL… But in these two cases I woudnt risk it because the S&R needed to be confirmed…

      But your scenario under other circumstances would be the way to go!

  • Alex

    Hey raul. What time frames do you use for long? Regarding eurusd i am thinking long based on the 4 hr and daily charts.

    • Raul Lopez

      Hello alex,

      Most of the times I use the daily chart… and sometimes I use the weekly and 4H for confirmation.

      good luck!

  • dominiek

    hi Raul,.. long time we did not receive your signals…
    I am with you on the EURUSD…short!! On daily and weekly chart clear bearish signals. Has broken out of the BUB …
    I am also long on CHF/JPY… according to me there is a bullish breakout on the daily chart… but your trading system is different to i guess you dont trade this one.

    thanks and lets hope for the best in Eur/usd… am sure Draghi will help us during this week!

    • Raul Lopez

      Hey Dominiek! Nice to see you commenting back!

      Yep, I like the way the EURUSD is trading… we’ll see what happens!

      I have the CHFJPY still trading near an important level… it needs to break through the short term range before I start to look for trade opportunities.

      Good luck!