Coming into this week we have an upside risk to the GBP, over the last 2 weeks we have seen a run down in price and have Hit a volatility zone at 2.00.
Volatility box: A zone on +/- 50 pips where price can move freely outside the zone until conformation higher or lower
At this time we are looking to see do we get a conformation of 2.00 out of the volatility box this sets shorts up with great fielding for a trade set up
1st Trade: is taken at 2.025 ideally you want to take enough risk to accommodate 250-300 pips of loss to get you to the 2nd trade
2nd Trade: Taken at 2.050 this trade this level represents a clear over extension in price where buyers should be taking profits back to 1st target or hold as core position
Volatility box: A zone on +/- 50 pips where price can move freely outside the zone until conformation higher or lower
At this time we are looking to see do we get a conformation of 2.00 out of the volatility box this sets shorts up with great fielding for a trade set up
1st Trade: is taken at 2.025 ideally you want to take enough risk to accommodate 250-300 pips of loss to get you to the 2nd trade
2nd Trade: Taken at 2.050 this trade this level represents a clear over extension in price where buyers should be taking profits back to 1st target or hold as core position