I've just entered a long position in the above GBPUSD (blue dotted line signifies entry/ red dotted line stop). Rational comes from a sense that we should have sold off today but instead witnessed a very assertive hammer formation on the daily chart. The 4hr above shows clear trend channel in play which I was surprised to see hold-up during today's session after convincing sell-off in the morning. I give the trade a 50:50 success rate; but with the element of surprise believe there could be some good upside potential if
we can break above yesterday's high at around 1.57350 forcing bears on the back foot...my profit target is accordingly upto the 50% fib at 1.59 (depending on price action as always).
Woke up this morning to find this trade about 35pips on-side. Going to trail the stop on this one as the longer-term trend is not in my favour and there has been previous resistance in this area. I'm was always looking for short term momentum on this trade to trigger short stops rather than position for longer-term direction so I think a trailing stop is justified.
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