GBP having a breather!!

Morning Dynamic Traders

Hope you all having a good week so far.

My update on day one of following the pound I said that it should have been on your watch list as it has been offering us lots of profit. In fact all week the pound has been offering us pips to steal, but this is very much dependant on what kind of trader you are. Like my fellow JMA Zaheer I am also a day trader. For the more short term traders out there who prefer to scalpel, this week could have been very profitable. Allow me to demonstrate why.

I said yesterday that price could be having a breather, well that’s exactly what price has been doing, and explains perfectly the behaviour of price so far and is also the method for making money this week.

In the hour chart below I marked out where price has hit a breather level 3 times. You can see that after our big drop on Monday price then climbed to the first breather level and then dropped again. The drop in price took 4 hours, before it climbed again to another breather level, which then dropped over a period of 3 hours. Price was then climbing through Thursday, and very early this morning before dropping again, which again took only 3 hours (but remember it could drop some more today).














Don’t feel too disheartened if you missed all those pips, because it could have been quite stressful, and you would have to be at your computer at exactly the right time. You would also have to of been very aggressive with your entry and your stops. What we can take away from this is an understanding of where price could be going, so that we can get ready for next time, and hopefully you might be able to see similar setups on larger time frames on different charts.

Happy Trading

Richard