EURBGP - Going long?

The weekly long-term GMMA (orange) of this pair is starting to expand in the upwards direction indicating that it is likely that an new uptrend is in place and gaining momentum. Meanwhile the weekly short-term GMMA (blue), that tracks the behaviour of traders, shows a bit of compression, indicating that traders took profits from the price move from the low of November of 2015. The later provides a nice opportunity to join the trend. However, there is other scenario that must be considered: if price closes below the purple line, then price makes a Head and Shoulders pattern (H&S) with downside target around the 0.7350 level, which can not be ignore, since this pair is in a young new uptrend and in this stage the trend may not be completely supported by investors and thus is still a bit unstable.

Scenario 1:

Order 1:

Entered @ 0.7917
SL @ 0.773
TG @ 0.829
Trade management: boxes in units of risk-to-reward ratio.


Order 2:

Entered @ 0.7917
SL @ 0.773
TG open
Trade management: boxes in units of risk-to-reward ratio. Move stoploss to break-even as soon as Order 1 hits target.

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Scenario 2:
If price closes below purple line, trade according with H&S pattern rules.
SL @ 0.7945 area with full downside target @ 0.7350
Trade management: boxes in units of risk-to-reward ratio. Move stoploss of Order 2 to break-even as soon as Order 1 hits target.

Dagangan ditutup: hentian tercapai