GBPUSD Technical Analysis 1.26.2018
GBPUSD from December 28/2017 till January 25/2018 has produced 4 market pattern breakouts where traders could have entered LONG positions and rode the market rally to the upside. Since December 28/2017 the pair has extended over 900 pips to the upside. The chart below will show how any trader could have caught the GBPUSD move higher by trading market pattern breakouts. Traders only need to watch for these patterns to happen and execute the trade when the breakout occurs. Market patterns are Channels, Triangles, Wedges, Head and Shoulders pattern, Cup and Handle pattern, Flags, Pennants, Harmonic Patterns, Elliott Wave Patterns. These patterns form in every market and in every time frame. Each pattern has precise entries and defined stops. Market pattern breakouts can also be used with a simple 50 moving average plotted on the chart on any time frame. Only take the buy breakout if price is above the moving average and only take the sell breakout if price is below the moving average.
GBPUSD 1 Hour Chart
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan
*** Always use proper risk/money management according to your account size ***
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