Between yesterday’s blow up high and last nights dumping low we find ourselves treading water bang in the middle of a short term wedge. While we have championed the case for standing back there will be many who just can’t resist the urge and will jump in. If that’s you then look to where you can have the risk on your side. Buying or selling right here at 1.5990 is nothing more than a 50/50 gamble. We don’t do gambling at ForexLive.
GBP/USD 15m chart 16 10 2014
The pattern makes for simple trading, if you’re so inclined. Lean your trades against the edges of the wedge, keep your stake small, and put your stops a few pips outside of those two touches at 1.6027 and 1.5940.
To quote the master, “define your risk”.
