In my previous post, I share with you the 2 levels of importance on the EURUSD and 2 levels of importance on the GPBUSD.
The price hits the upper resistance of the GBPUSD and was being repelled back immediately after that. This goes to show how powerful this level is.
The problem that traders are facing now is the price keeps on attempting to break the upper and lower level of S&R but failed eventually.
These will create a lot of fake breakout which leads traders to enter the trade which ended up as a losing trade.
But the advantage of having such a market is that it will give you a lot of profits when it eventually break through it.
Tips For Breakout
You do not enter a trade immediately after it breaks through the upper of lower level, you have to wait for it to produce a whole body candle above the level to make it a more valid breakout.
As you can see the picture below which is the 15 minutes chart of the GBPUSD, the price did not create a whole body candle after breaking through the upper level and that is why it reverses down
So how should you trade the EURUSD and GBPUSD this week
As it is still moving in a range, I will say that it will continue to move up to hit the upper resistance. This is where you can exit your trade to be safe.
What you can do is to observe to see if the price manages to break above the resistance or not. If not, you can enter a SELL trade to trade the range.
I will look to SELL this pair for this week as it failed to break above the upper resistance. But I will not enter the SELL trade now as the price is being supported by the EMAs. I will wait for the price to break the 400 EMA before I look to SELL it.
I hope that these tips are useful for your trading.
If you wish to learn how to analyse the market and how to trade the market, you can take a look at my course below