A Structured Trading Strategy: Classic Set-ups

 Where Price Action, Trend & Proper Market Timing delivers an effective trade

The continuing market set-up that built a structured trading strategy for the EURGBP have started from the consolidation period since April 2013, towards the first week of May to the current corrective movement of the USD today the 24th of May, that provided the additional lift that can best be described as a follow-through registering a 0.8595 High.

As the USDx declined before the North American trading session to as low as 83.50 where its support level would stall its decline since its resting just above its rising secondary channel. Pullbacks such as this is very typical and healthy during the end of a Friday trading activity; but not necessarily a trend reversal that can only best described as a temporary price reversal which would very well finish at the support levels. The weekly closing and candlestick bar configuration is always critical as it would dictate the outlook for the trading week ahead. For now, the weekly bar is within the previous week's higher band signifying an intra-week bar suggesting a pause for some fresh incentives.

Watch for the opening price in the Asian trading session for a glimpse of the first 3 days of trading activity. So far the chosen currency pair for the EURGBP cross rate has delivered the necessary gains to stay within a structured trading strategy.Click to continue