I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Sell GBP/USD
I see a nice bearish set-up due to both fundamentals and technicals. Our GBP/USD trade was stopped with a 50 pip profit earlier today after the Bank of England went against market expectations and had the audacity to keep interest rates unchanged! This move by the BOE will simply increase the crying of English government officials, economists, and other haters to cut them rates already so I expect such a thing to happen during the Bank's next month meeting.
I look for the market to agree with me with my rate cut prediction. Add along the expectations of a rebound in tomorrow's NFP event, I'm going to once again short this bad boy. A 50 pip win is nice, but since I expect this pair to really drop soon, I'm looking to win big.
Not only do we have a nice bearish set-up due to fundamentals, but technicals as well. Notice how the pair is bumping its head up against resistance from the bottom trendline of the channel. There's also hidden bearish divergence with price forming a lower high while the oscillator forms a higher high.
I'm selling at the fresh market price of 2.0400. My stop loss (SL) will be 2.0450. My profit target (PT) will be 2.0200.
Sell GBP/USD @ 2.0400 | SL: 2.0450 | PT: 2.0200
