Profit Target Hit: 50+ pips

A few hours ago I posted a quick note on the GBP/USD looking bullish and a possible Long/Buy trade setup.

The price at the time of writing was 1.5419 at around 16:45 EST (21:45 GMT). As the price was moving sideways into a nice little triangle, it made for a perfect entry. I stated a profit target of 1.5475. The profit target was hit around 19:15 EST (00:15 GMT), or about two and a half hours later. The trade would have yielded 56 pips if entered at the time of the post.



What made the trade better was that the price moved less than 5 pips against you at the time of the post. A sensible stop-loss would have been 25 pips or so, giving a slightly better than 1:2 risk/reward ratio.

As I always say at the end of my posts, trade with a stop-loss and enter only when you have a good risk/reward ratio.

H. Hamid

Bullish GBP? 88.6 Fibonacci Bounce

On 14 December, GBP/USD began a downtrend that moved the pair about 550 pips from a high of 1.5911 to a recent low of 1.5357 made on 22 December.

Since the low of 1.5357, GBP/USD has been moving sideways building a nice base. It recently made a bounce off the 88.6 Fibonacci level: the price moved from Point 1 to Point 2, and then retraced 88.6% to Point 3 before starting to move up again.



The recent consolidation as seen on the 15 minute chart provided a good opportunity to get into a long position. Point 2, 1.5475 is a potential profit target.



Always trade with a stop, and trade when the risk/reward ratio is in your favour.

H. Hamid