How is everything Traders? How did you do last week with the Non-farm payrolls report?
It’s interesting how the sentiment of the market can change in a few seconds… Specially in pairs that had a well stablished market condition… such as the USDCAD and the AUDUSD.
Anyway… Whats your take on Brexit?
There’s been a lot of talking about it, whether its going to make the GBP go up or down, etc.
Let me tell you something Trader! it doesn’t really matter… Why you may ask…
If it goes up, you just look for long opportunities, if it goes down, you look for short opportunities, end of story.
Traders, investors, analysts like to think they “know” what is going to happen… but the truth is that no one knows, not even those who have more information than we do.
So Traders, don’t worry to much about it! Just focus on the market and trade what you see!
The Best Trade Opportunities Right Now
Some of the GBP crosses are amongst the best opportunities to trade right now… Specially the GBPCHF and the GBPAUD
Both of them have a very good profit potential!
Here is the long term chart:
As you can see, it was rejected from an important resistance level.
And based on the main principle of price action, which tells us that the market moves from one level to the other, you know that it is likely to continue its way down until it reaches the next support level.
From where the market is currently trading, we still got more than 650 pips before we hit the next support level, so you’ve got plenty of room to plan your trade.
And the other one…
Let me show you the daily chart:
As you can see, it is also trading in a very clear bearish condition, which means that it is likely to continue its way down.
But there is something going on on the short term charts…
Let me show you that chart:
It is trading in a short term range, so as long as it keeps trading inside this range, you can trade on both sides of the range…
For instance, right now it just got rejected from the support level, it’s got upward pressure so it makes a good opportunity to look for a long trade.
Likewise, when it gets to the top of the range, if we get downward pressure, a short from there might be the way to go.
And once it breaks through the bottom of the range, only short opportunities will be in play!
Let me know what you think.