GBP/USD: How would I know...

[lulu2199]

Hello everyone,

Sorry I cant upload an image as im outside, but please take a look at daily chart of gbp/usd. I placed a trade with a take profit on the pinbar yesterday. I know that BoE said that they aint gonna do anything for inflation, but what the market is saying is that the dip is somehow slowing down, and the same goes with all other GBP pairs. For the moment, I choose to keep my position, since I feel a rebounce in the air, and considering the fact that GBP is been really oversold... heavily.

Any advice?

Thanks!

Lulu2199

 

[Easy Trader]

The reason I chose to pass on this setup is because the pinbar is trading directly back into 1.57000 support/resistance, and back into a consolidation box. If I step out to the weekly or monthly the pair seems to be in the middle of its range and not very oversold. However there is some slight divergence on the daily.

 

[lulu2199]

The reason I chose to pass on this setup is because the pinbar is trading directly back into 1.57000 support/resistance, and back into a consolidation box. If I step out to the weekly or monthly the pair seems to be in the middle of its range and not very oversold. However there is some slight divergence on the daily.

Thanks mate! I was thinking about this throughout the day and came to the following conclusion:

1, before the release of the news, I had a considerable profit, but decided to power through my tp setup. Next time, I'll simply avoid to have any position open when the country of the currency is about to announce anything, and see whether I can grab a small profit before I bounce.

2, as for my pin bar selection, I'll only choose the ones on a level of resistance/support, regardless whether the pair is really low or high.

Is there any flaw in my logic? Please tell me if you do!

Lulu2199

 

[Easy Trader]

I don't think there are any flaws in your logic, you are just learning how to trade price action. Little things like this are why PA trading is hard to teach. But this is how successful traders are made. Keep it up!

 

[lulu2199]

I don't think there are any flaws in your logic, you are just learning how to trade price action. Little things like this are why PA trading is hard to teach. But this is how successful traders are made. Keep it up!

Thanks! So in the future, I'll filter more these false patterns and not trade at news release lol