Hi,
the last couple of days I have not been able to make the Daily Forex Trade Setups Posts in this blog for you because I have been travelling and away spending time with family and friends.
I was lucky enough to be the best man at a wedding on the weekend and obviously with the travelling and catching up with family, this has taken up a lot of my time over the recent couple of days. For those of you who are signed up to my email list you will be seeing some pictures from this wedding really soon! You can sign up for this email list to get all the latest trade videos, price action setups and trading lessons straight to your inbox on the right hand side of this page.
I travel back home tomorrow, but am back into the swing of things tonight starting with the GBPUSD. This was a pair that was both traded and discussed heavily by members in the Forex School Online Lifetime Members Area recently with price breaking higher. Well done to all of those members who pounced on the price action clues once price had flipped and held above the really strong support level.
Price on the GBPUSD recently EXPLODED out higher and through the major daily resistance level. This level has been a super important price flip level with price acting as both a support and resistance level on the daily chart. I explain in detail exactly what a price flip level is and how you can look to hunt trades at them in the trading lesson here;
Trading High Probability Price Action at Price Flip Levels
Price had struggled to break higher and through this level for over a month and so once it finally did break this level, price smashed through with strong momentum. Once this major daily resistance was broken it then became a question of traders looking to see if the old resistance was going to hold as a new support level which is the market principle that repeats time and time again. You can look for this principle on ALL your charts i,e; resistance turned to support and vice versa.
As the 4 hour chart shows below; this flipping occurred bang on at the Very Big Round Number (VBRN) of 1.5000 with price making a quick retrace and holding as a new support level. Price paused at first, forming an inside bar (IB), followed by a Bullish Engulfing Bar (BUEB) which was the signal price was holding at the new support level and looking to continue back higher with the new strong momentum on the 4 hour intraday chart.
As the daily chart shows below; the next resistance now comes in over head around the 1.5480 and then 1.5580.
GBPUSD Daily Chart
GBPUSD 4 Hour Chart
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