GBPCHF Daily Trade Setup

Right now we have a great trade opportunity set up on the gbpchf currency pair. In this trade setup, yesterday’s candle closed at the top of the range with a very long spike to the topside. Today’s candle, though not yet closed is looking extremely bearish. It went back for a test of the 1.7070 resistance area, and is now falling back quite heavily.The daily chart below has the range drawn in with red horizontal lines. The trading strategy for this setup is the same as when trading smaller ranges. The stoploss, and targets are just more significant. My target for profit is 1.6450, close to the bottom of the range. A wide stop is required, so I have mine placed at .7100.

When trading a range of this size, (over 500 pips), it is important to know how to manage the trade properly. There will tend to be a lot of spikes, and whippy movements sometimes, but everything should be fine, as long as you have an appropriate stop out of the way of the market. I sometimes enter with a smaller position initially, to run the duration of the trade, then look to day trade the additional swings I get while the market remains inside of the range.

Patience is required, and this is a great opportunity if you would like to work at staying in your trades for longer durations.

Thanks for Reading, and Successful Trading to You!

The following two tabs change content below.
Winners Edge Trading was founded in 2009 and is working to create the most current and useful Forex information and training available on the internet.

Latest posts by admin (see all)

Winner’s Edge Trading, as seen on:

Winner's Edge Trading in the news

  • Jonathan

    Yes, thankfully I entered a limit & reversal at the reasonable support of 167.40 & called it a day. I'm buying with hopes of the correction going to the mid-168.50's then re-group.

  • Dave_Campbell

    I am indeed!

  • Hi Jonathan, forgive me for only just replying. I missed the comments on this article. I hope you stuck with the trade. It really is looking good to me. If you are unsure, consider taking some profit now, and allow the balance to run into further profit. Thanks for the comments. Have a great trading week! 🙂

  • Hi Nigel. I'm sorry I missed the comment days ago. That is a very valid point you made. Personally I'm not too fond of trailing stops unless I'm trailing a really fast move, such as those that usually happen just after news announcements. This is what I do to avoid losing out on a trade after being profitable to begin with. I like to trade with multiple lots, so even if my stops are big, I prefer to cut my position sizes down so that I can do multiples. This allows me to scale out of a position gradually. For example, sometimes I take my first portion off at +100 pips, make sure that the market is a 'safe' distance away from entry, and then move my stop to breakeven. At this point I'm essentially running a free trade, and can remain stress-free about it. Thanks for the comment, and a successful trading week to you 🙂

  • Thanks for the comment, Dave. I held this short through NFP and it is still looking great. I hope you're still holding it 🙂

  • Dave_Campbell

    GBPCHF is dealing with the first of about 3-4 pivotal areas on the way to 6450 the first being at 6900 then 6730 and 6580. It is top heavy for sure. Should be interesting with NFP on Friday. Stop looks good, Casey. Yep I'll throw a couple lots on this one. 🙂

  • Nigel James

    Interesting Sophia, thank you, I'll try it. One question, though; what about a trailing stop? I'd hate to be up 400 pips only for it to reverse all the way to the original stop.

  • Jonathan

    I haven't heard any news on either party here. It looked great at 1.7000 but that's about it so far; I'm debating whether I should bail at this point.