Currency pair that are worth trading coming week. Lets plan this.
This currency pair had just went off from its Demand level and on its way towards the supply zone. What I want to see to ensure this trade work is:
- Arrival is strong enough to create a least path resistant on its way back down
- A strong rejection from that supply indicates the strength of the level.
- Where are we in the larger time frame ?
Bank Orders confirmed:
Sell orders parked at 1.41000
Offers: 1.3985 1.4000-05 1.4020 1.4035 1.4050 1.4080 1.4100
Bids: 1.3920 1.3900 1.3880 1.3865 1.3850 1.3830 1.3800
BOLDS means larger size .
FX Drivers for week Feb 26 – 2 March
USD on Tuesday – Not much of a GBP week but the USD might help propel the price.
Sell Limit 1.4095
If trade wins – Review
If trade losses – Review
Stopout scenario – Reverse trade re enter on the Buy side if the Price action confirms. Upside, no fresh supply nearby. Take profit for Break even or profit it out. ( This indicate confidence in the GBP market and positive economic outlook ). Supply being outbid by demand.
May be this pair is a missed opportunity, but still demand level lower is much of a cheaper bargain provided the price drop sharply . What amazed me is there is no fresh supply above it providing a good run to the Top side. Now we know GBP is heading towards supply, perhaps a good idea is to wait this pair before Buying into its demand.
Bank Order Board
Offers: 0.8830 0.8860 0.8870 0.8885 0.8900
Bids: 0.8800 0.8785 0.8750 0.8730 0.8700
Draghi to speak on Monday. Something to watch on this pair. If We are right, look for price action of rejection signal.
Buy limit at demand 0.8754
TP 0.8854 / 70
Stopout Scenario – The next larger Demand on the monthly is 0.85078. A reverse trade , any role reversal means sellers in control and demand are simply out trade. Target to Breakeven or profit 1:2.
If Win – review
If loss – review
These are my typical normal trading plans. I do record the number hours of sleep as part of my trading plan. IT does have affect on your decision and quality trading execution. In this case, you don’t need to think twice as you plan out already the trade. Follow the plan and learn from it!
What happen if I miss a trade ?
Don’t bother chasing but look into the smaller time frame price action to hitch a ride into the trend or just take 5 pip and run. Or simply dont trade but review it. Its a learning book that trading plan you wrote so the next time it happens, you are well prepared!
Happy hunting everyone!!