Setup
The US Dollar is behaving weakly today, with the US Dollar Index (DXY) dropping by 0.71 percent. The GBP is behaving relatively strong against most off the other currencies, with the exception of the Australian Dollar.
The GBPUSD pair has been moving up in the 1H Chart, and, after a breakout of the previous highs of 1.23218, the price made a new high and retraced to the mid-Bollinger line. Then it made another engulfing candle that drove the price of the pair back to the 1.2352 high. We see a potential target at the highs made on April 02 for a Reward-to-Risk ratio of 1.72. Thus, We think we can profit with this long-side opportunity that follows the current bias of the market and with a nice reward ratio.
Trade Summary
- Long Entry: 1.2349
- Stop-Loss: 1.22841
- Take-Profit: 1.24611
Risk levels:
The risk levels of this trade are shown below.
- 1 Lot: 649 GBP (USD 800)
- 1 mini-Lot: 64.9 or USD 80
- 1 Micro-lot: 6.49 or USD
Position sizing
Based on the above risk levels, our recommendation is not to trade more than 1 percent of your current trading account. Thus, trade about one micro-lot for every $1,000 in your account.
