Breaking the Trend is Hard Work

Good Morning Dynamic Traders,

Half way through the week now which means that there is still plenty of time to make some money.

My update on Monday I spoke about entering a short position (GBPUSD), and I said that a more conservative approach might be better. The reason for this is because of the trend line. If you look at the day chart below you will see that price has tested this trend line 3 times, which demonstrates the strength of this support line.













Once price has broken below the trend line, price will then have to break below the support line at the RN as well. This also won’t be an easy task as it is this support line which caused price to oscillate for a month, which means that being aggressive might not be rewarding this time round.

By adopting a conservative approach your entry would be well clear of this trend line, and providing that price drops below the support line at 1.4800 it would also be less stress than taking a more aggressive stance.

Remember to always carry out your own analysis.

Carpe Diem

Richard Monnery