GBPCHF is set for a drop.Hi traders,
I hope you're well. As you must have witnessed recent rally on all GBP related pairs purely due to election sentiments. As things stands we can see the Tories are set for a majority but it is not easy as it seems and neither a plain sailing. We should see labour closing gaps and few other hiccups in coming days prior election and probably a hung parliament. Tories majority is almost priced in and hence any negative sentiment will cause significant drops in price. UK politics is well known for it's drama and chaos thanks to lates brexit limbo.
I'm anticipating more drama's in coming days and the market bias should change accordingly. (In Theory)
But I will surely not place trade based on theory and assumptions. So, here we have a nice reversing candle printed on the 4h candle also on the D chart which engulfs the previous and we are also in a major level where historically price reacts. All these suggest a reversal from this point and if you put those theories alongside the technical indicators it adds up perfectly for this trade.
I have gone short on this for now and marked tp and sl for you as well.
Let me know your thoughts.
Trade safe and good luck.
Gbpchfshort
Possible GBP/CHF Short Position!!SMP TRADING
SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY
SMP Strategy
Chart time frame - H4
Timeframe - 2-3 Days
A – Activating Event
Market will meet resistance in zone @ Current levels - ... . In order to enter into this trade, the pair MUST be in line with my Entry Procedure....
B – Beliefs
Market will move towards the first Target 1 level @ 1.282
C - Fundamentals that may affect the pair
N/A
D - Trade Management
Entered @ .....
Stop Loss @ .....
Trailing Stop Loss@.....
Target 1 @ 1.282
Target 2 @ ....
Risk/Reward @ 3.1
Happy trading :)
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This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
GBPCHF Range Breakthrough?Entry – 1.2715
Target – 1.2618 – 96.5 pips
Stop Loss – 1.277 – 55.0 pips
$GBPCHF has been in a range for about four weeks. Price is currently at the bottom of the range, so it’s not necessarily the smartest place to sell, but the long upside wicks and PA’s slogging pace to the downside over the past day makes me feel like it’s worth taking the risk on a short position
4-Hour Chart:
Price is below the Ichimoku cloud, conversion line (red line), and 30EMA (green line). Again, we’ve seen more active selling in the 1.279 – 1.283 zone than buying in the 1.272 level. We’re trading against a recent uptrend (beginning August 13th), but a test of the 200MA (blue line) seems like a nice target for a retracement. The stop loss is located in the middle of the range and above the Ichimoku cloud and the 30EMA. My thinking here is that if the price reaches that level, we’re likely going to test the top of the range at least one more time and the entire thing should be reassessed.
Daily Chart:
Price broke through the 200MA on October 15 and came to a halt into the range zone. Oftentimes, price will retest the 200MA on a break. Take profit target is right below that 200MA line on the daily chart. The 30EMA is touching, but has not crossed, the 200MA on the daily chart.
Price touched and reacted off of the monthly 30EMA.
This should be considered a risky trade and you may feel safer taking a trade when a direction has been clearly established.
-Zedro