Pound trades inside trading range

Daily analysis on Gold and the Dollar index
February 2, 2015
Pound breaking out of trading range
February 4, 2015

The British pound is trading inside a trading range of 1.5220 and 1.4950. Price is now near the upper boundaries of this trading range and I believe the best strategy to be followed is to go short with stops placed above the trading range boundary. So if the range breaks upwards our stops will protect us now that we are selling close to resistance minimizing possible losses.

GBPUSD1

This FX pair is trading sideways and since we are close to resistance  I will open short position with the stop placed at the upper boundary of the trading range. This setup if it continues to play out has many chances of pushing the price lower towards the lower boundary giving me a nice profit with a low risk as I sell close to resistance levels. This is just an example of the trading setups I post through my exclusive for members twitter account @trading2dayFX. All my trades and analysis are posted there for subscribers.

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Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.