GBPUSD appears overbought BUY

4 Feb 2020

1.29254 - 1.29634 Add to Watch List
Signal ID: 70501
Time Issued: Tuesday, 04 February 2020 08:00:15 GMT
Status: open
Entry: 1.29254 - 1.29634
Limit: N/A
Stop Loss: 1.28683

The Congestion Opportunities Strategy has just bought GBPUSD at 1.29444. The system recommends entering this trade at any price between 1.29254 and 1.29634. The signal was issued because the 28-hour Relative Strength Index indicates that the GBPUSD may be overbought, while the Speculative Sentiment Index reading of 1.20199 indicates that trader sentiment is not at extremes.The 14-period Average True Range on a daily chart is 0.00761, so the stop loss has been set at 1.28683. This stop loss order is a trailing stop that will move up as the market moves up. There is no profit target for this strategy. We expect to be closed by the stop loss.Congestion Opportunities is a range trading strategy that aims to sell overbought currency pairs and to buy oversold currency pairs. The strategy will only trade when the Speculative Sentiment Index for that currency pair is between -1.5 and +1.5. Limiting range trading in this way has shown in the past to significantly raise the probability of successful range trades.