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How we've benefited TWICE in two weeks from the GBP-weakness!

Hello everyone, I hope you're doing well!

Today I will write an educational blog about the opportunities we have taken in recent weeks due to the GBP weakness.

These were two trades that have provided us with over 300 pips each, so we're talking about over 600 pips in two weeks of which one trade is still running! Hereby I'd like to show you that it's not obligatory to trade every day and to force certain trades in order to get nice results! What is much more important is the quality of the trades, less is more! This was a very important lesson that our whole community has learned over the past two weeks!

We'll go over my personal analysis and how we found and executed these opportunities!

The first trade we took was GBPJPY, we saw clear weakness of the GBP against the JPY so we took a SHORT!

This is the Weekly timeframe before we took the entry on GBPJPY!

We can see a clear Bearish driver to our left, we want to trade in the direction of the Weekly, so we look for SHORT set-ups.

This was the Weekly chart after we took our entry!

We received a heavy Bearish push.

This is the Daily timeframe before we took the entry on GBPJPY!

We can see a clear Daily S&D zone (white box). Every time we trading below this zone, it is acting as resistance. Every time we are trading above this zone, it is acting as support. Right now we are testing this S&D zone and we are definitely trading below it so let's see if history repeats itself and if it will push the price lower again! We have determined our Take Profit level at 129.600.

This was the Daily chart after we took our entry!

We have retested this zone perfectly, it acted as resistance as expected! We have perfectly hit our 129.600 TP region!

This is the 4H timeframe before we took the entry on GBPJPY!

The price approached our Daily S&D region pretty impulsively so I wanted to see clear deceleration of the Bullish momentum first! This happened when we reached our descending structural trend line! Not only did we decelerate, we also formed our infamous Bearish W-pattern (pink box) which confirmed us that the market clearly wanted to go for more downside momentum!

This was the 4H chart after we took our entry!

We broke our ascending trend line impulsively and have completed our 4H and Daily TP!

This was a trade from two weeks ago! Last week we took another short trade on a GBP pair, this time we have capitalized on GBPNZD!


This is the Weekly timeframe before we took the entry on GBPNZD!

On the Weekly chart, we received a Weekly Fib completion, the little blue box (-68 Fib). The big wick was a sign that the Bears really kicked in the market! Also we were trading below that very important, huge Weekly S&D zone! It could act as resistance and push the price lower, for more confirmation, we went to the lower timeframes!

This was the Weekly chart after we took our entry!

We received a heavy Bearish push.

This is the Daily timeframe before we took the entry on GBPNZD!

We received a very clear Bearish W pattern. We had a clear descending trend line to protect our position, which aligned very nicely with the Daily S&D zone (white 61.80 Fib), this is the area where we were interested for a SHORT set-up! We have determined our Daily take profit level at 1.99950.

This was the Daily chart after we took our entry!

We have completed the Daily Bearish W and have completed the Daily -27 and so, our TP level of 1.99950.

This is the 4H timeframe before we took the entry on GBPNZD!

At last we went to the 4H and we wanted to eliminate the ascending structural trend line which was holding the price up! After it broke, we received a beautiful retest (grey box) of that structural trend line!

This was the 4H chart after we took our entry!

We had a very nice retest of the structural trend line which aligned nicely with the institutional candle (small grey box), after that we went easily to the Daily TP!

This were our set-ups, explained in detail!As you can see, we don't use 20 indicators, just simple price action! The clearer your charts, the better your results, don't make it too complicated!

If there is one lesson that you should take from this blog it is definitely this one: 'QUALITY ABOVE QUANTITY!

I hope you have learned a lot from this blog!


Armani-Rochas Decock

The Forex Dictionary team



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