100+ Pip GBPUSD Trade Setup (Right Now!)

Today’s deep GPBUSD pullback seems to be an excellent opportunity for making some pips!

Why is that? The GBPUSD is entrenched in a strong uptrend but price has made a decent pullback within that trend.

This offers traders the opportunity to join the trend at a discount.

This is counter-intuitive to the view of most traders, who focus heavily on reversal setups (both on purpose or by accident). However, here is a firm WARNING: trends can be extremely tough to stop which means that counter trend trades are often mistimed and stop losses get taken out prematurely. If you see this recurring often in your trading, be cautious. Back to the GBPUSD…

The recent price action has seen upward momentum, followed by a decent sized consolidation, which has corrected down to the 50% Fibonacci level. Usually when price goes sideways after a strong momentum, it is usually setting itself up for trend continuation.  

 10- 7- 2014 gu 1 

The trade details GBPUSD long:

1)      Our entry was at 1.7130 but some trader room members managed to get in even lower.

2)      The stop loss is below the current bottom at 1.7079.

3)      The take profits levels are aiming at the -27.2% and the -61.8% Fibonacci targets at 1.7222 an 1.7280.

4)     A trail stop loss of 15 pips is used for each new 1 hour bottom (a candle low that has 2 candles to the right and 2 candles to the left). 

5)   The reward to risk ratios for the above trade details when target is hit: 1.8 for the 1st target and 2.9 for the 2nd target.

Is there a certain guarantee that price will indeed move up and reach our target? Not any trade will ever have a 100% chance. Never. But the statistics of this setup are in our favor and that is the desired winners edge.

10- 7- 2014 gu

This was the setup we are taking. Let us know down below what you think of it? Does the trade make sense to you? Or do you see danger that we missed? Let us know down below!

Happy Trading!

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Chris is the head of the mentoring program and trading room at Winner's Edge Trading. He has a passion for technical analysis and helping Forex traders achieve their goals in trading. Chris has been trading for almost 10 years and is most fond of the Double Trend Trap (as a strategy), moving averages (as an indicator) and Fibonacci (as a tool).

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  • mathew omoboye

    I am new to the trading room but my computer can not open the chat wing so there is no how copy the trading from the room . please me out.

  • Edith Helwegen

    Great article. I’m in the trade also. My Risk : Reward = 1:2 with the second target.

  • Chris

    Hi Casey, that’s great news :) the GBPUSD uptrend has indeed been doing great so far – lets see if there are one or two more pushes to the upside available :)

  • Chris

    Good question, thanks Nathan. I have added the R:R ratios for both entries in the article: +1.8 and +2.9 are the reward to risk ratios.

  • Chris

    An extra explanation: each 1 hour bottom will be used for a trail stop loss of 15 pips.

  • http://www.winnersedgetrading.com caseystubbs

    Thanks Chris I just went long as well which I have been going long on the GBPUSD for some time and the trade always seems to work :)

  • NathanTucci

    Thank you for that explanation :P

  • NathanTucci

    I am in on this one. I like the potential here and I think the pullback is resetting this thing for a possible slingshot. Now is a good price to jump in… What is your R:R ?

  • tim s

    DANGER, DANGER, DANGER, DANGER

  • simone

    Great artilce wuill jump on the trade