The weekly up trend line shown in the chart and the psychological level of 1.30 have proven to be a strong support for GBPUSD pair and hence it bounced off significantly from that zone to the upside.
Therefore, any break above the top of the weekly candle is a buying opportunity. This pair could be on its way to test the resistance of 1.3650 once again. That areas can once again offer strong resistance. Therefore bounce back and forth between the up trend line and the resistance of 1.3650 could continue for the time being.
Trading Preference
Preference is to the upside at this time around, especially if it can raise above the top of the weekly candle. At this time, buying the dips could offer value and hence is the preferred way to trade this pair for the long term.
Looks really interesting. Idea of stoploss level?
Thank you.
Greetings from Black Forrest/ Germany
Hello Micheal, thank you for the comment. Since these are long term charts, the trading is also for the long term. In case if you are buying above the top of the weekly candle, I suggest to keep the stoploss below the bottom of the candle, or below 1.30 level. Position sizing of course will be important. There could also be other swing trading strategies where you don’t use a stoploss but rather you would sell if the buying setup is invalidated after you buy.
OK. Thanks 🙂
Which leverage do you prefer for longterm trading? Do you think a leverage of bigger than 50x is possible?
At the moment of this setup the chance to win and risk to loose is nearly 1:1 – right?
(start signal for buy in market > 1,334; take profit 1,365; stoploss 1,30)
Is there possibility of a better setup – buy in and stoploss level – also for longterm trading?
You see, many people think high leverage increases risk. But the point is, higher leverage does not increase risk if you don’t increase your lot size. But rather it reduces the margin requirement of an equivalent lot size, which means your account will reach margin call later with a higher leverage than a lower leverage. That being said, the probability of this pair hitting upside target is much higher than it may hit an SL below the candle. Long before you hit the SL you would know what to do, if you have made plans on that scenario. Sometimes your plan needs to include just a little more than waiting for the position to be stopped out.