If you only can trade this pair what is your plan? Are you done?
Okay, here's mine:
I trade forex with my own strategy, I named it MARS (Moving Average Resistance Support). The MARS rely on weekly time frame. The MARS needs two ingredients, first Moving Average, second price level. Below you can see EURGBP weekly chart with three moving average.
The red MA represent 200 Moving Average. The blue is 50MA and the yellow is 20MA.
Look at the last candle. It stop below the 200MA.
Now, I need to find support or resistance to setup my trade. To do this I'll use http://marstrading.blogspot.ae/2015/08/3-rule-to-draw-perfect-support-and.html?m=0
In the weekly chart I can't fine a good price level. So I switch it into monthly time frame.
Binggo.
In the monthly chart I found three spots I can use it to draw my price level and because it's above the price, we called it resistance level.
My resistance level is the white line.
Now, my chart was completed.
Because I use weekly time frame to trade. Let go back to weekly EURGBP price movement.
Wow. Binggo.
The price touched the resistance line and go down. It's common behavior.
My plan is simple:
I'll wait till the pair show me one of these two things:
1. Rejected the line
If the pair respected the level I'll open sell
2. Break the line
If the pair denied the line I'll open buy
Buy and sell is based on price action. You can wait till big bull candle or engulfing or big belt candle appear.
ENJOY YOUR TRADED
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