This was a selling opportunity due to a supply zone (red box). I was waiting for price to break out of consolidation (first arrow), enter the supply zone (second arrow), before setting a sell stop below the zone. My stop loss went above the previous highs and I was targeting 70 pips, back near support below.
And that was what happened. My sell stop got triggered, before consolidating around my entry. In the fourth image, you can see that I drew out a rising wedge, as price seems to be respecting it. This was a good sign for me as rising wedges indicate a loss in bullish momentum. Price consequently broke out of the wedge, before hitting my target of 70 pips and 2R.
For this setup, I had a sell stop at 0.69438. I was expecting a bearish breakout as price was making lower lows. I had drawn a trendline using the most recent bullish move, a break below would indicate the market’s intention to go lower, at least to the level of support below. My stop loss was above resistance (blue line), and I had 2 targets for this setup. My first target was 35 pips and the extended target was 60 pips.
My broke out, retested my entry before making an aggressive move lower to hit my first target. In that same move, it almost hit my second target but was a few pips shy. As expected, after any strong move, price would have to “take a break” in the form of a consolidation. And right after that, price regained enough bearish momentum to hit my extended target.
That’s 60 pips and 2.4R in the bag.
I identified a buying opportunity due to a demand zone (green box). Just like previous setups, I was waiting for price to enter the demand zone before setting a buy stop above at 1.31625. I was risking 20 pips to make 55 pips, giving me a good risk/reward of 2.75.
Price didn’t respect my identified demand zone and blew right through it. However, my buy stop was left there. Admittedly, luck played a huge role in this setup as bullish GBP fundamentals made the pound rally across many pairs, this included.
Price eventually hit my target for a 55 pip and 2.75R winner.