Trading forex Daily trade for the GBPUSD
The markets, especially currencies at times seem to have no particular direction for a long time, So the question is can we still spot out a trend when it is forming.
Trend Following or Guess Work
...A good trade in the current market conditions is pretty hard to come by; one can sport a trend and miss entry by a few pips. Problems is we usually rush in after that to avoid missing out.
Long term trends at the moment are not positions that traders like me should be taking but it does not hurt to follow a trend when trading.
An important fact that we should keep in mind is that you need to define yourself either as a trader or an investor. Many people today in the market today are simply traders; investors are the big boys that usually spoil our day at times because they can actually effectively influence direction in a few minutes. And let’s face it they hold positions for a very long time.
Below i came up with the assessment of how the GDPUSD might perform as it seems to me there is a raising trend line after a triple bottom check out the graphs below.
First we can look at the Hourly chat, i always like to follow a trend that shows gradual directional movement rather than spike up or down as they normally have to pullback and it could be very aggressive.
Remember this is only my opinion it could change at any time as fundamentals do not really seem to support market action at the moment
After looking at that we can also look to something that has not been talked about for a while because it did not work for the EURUSD. The head and shoulder pattern, in the pair GBPUSD it seems the patter is still being formed and even if it’s not at least you could have an idea as to how high the price action might go.
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