Before a target is figured, most important price points must be known to provide a road map. Every currency pair must contain 4 price points for the day trade because we’re dealing with a two sided equation. At some point in the price path, a currency price will dead stop as a result of its own volition or as cause of the other side of the currency pair. Good example today is EUR/USD at 1.0948 and 1.0958. One is USD and the other is EUR.
GBP/USD lately has been a nightmare for its price path because immediate support and resistance points were built into its price path. GBP/USD’s 4 points are as follows 1.2809, 1.2841 Vs 1.2876 and 1.2908. Tomorrow is a different day and a new set of numbers to trade. Sometimes the price path is nice and smooth and easy profits come while others days, numbers can be hectic.
A break of 1.2876 then next comes 1.2841 and a break of 1.2841 targets 1.2825 then 1.2809. The furthest bottom for GBP/USD on a break of 1.2809 is 1.2793. Most important to a price path story is allow the price to come to you and don’t ever chase a price. Don’t trade two nasty intervals yet we don’t allow pips to go by without profit. Inside every currency pair on normal days is at least 50 pip profit on long and short round trips.
On 8 currency pairs, 400 daily pips are available. We’re trading 9 pairs because AUD/EUR as our main pair is a EUR/AUD trade. One side provides support while the other side provides resistance.
A respectful and sincere statement that won’t go over well is a child of 12 can trade and profit from currency pairs. A novice trader without a clue and Dr trades in between patients and is growing an account quickly week after week.
GBP/USD then on the topside must break 1.2876 to target 1.2908. Today, dead stop came at 1.2900. Actual targets for GBP/USD are 1.2872 and 1.2914 yet we’re not pushing past 1.2908 today. If we happen to catch 1.2914 in American markets then we’re selling if not 1.2914 then we sell 1.2908.
To view longer term for GBP, tops are located at 1.3033 and 1.3134. On the bottom side 1.2793 is a solid bottom then next comes a range point at 1.2740 and not expected to break.
GBP/JPY is getting interesting as its daily pips are expanding therefore its ranges are widening. Reason for range expansion is due because GBP/USD daily ranges are compressing. GBP/USD determines how far GBP/JPY travels. If GBP/USD ranges expand then GBP/JPY will compress. GBP/USD as the main pair runs the GBP show.