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Apologies for the slight break in the service over the last week. I had an awful lot to do putting together all the great content for the all new inner circle to showcase to you guys how we trade the financial markets, how we use the losing behavior of other market participants to our advantage. I thought the work was done the other day. It wasn’t quite. As it turns out, there’s not enough hours in the day, but we’re good now. We’ve got a lot of work under our belt, so it would be nice to welcome you into the inner circle.
But today we’re going to take a look at the GBPUSD and a trade that’s potentially setting up. It’s a trap that I refer to as a structure failure trap. And it’s when a retracement actually fails, but this one is a bit of a major structure failure trap. You see how the market goes up and then pulls back into that prior structure. It does head up as if it’s going to follow through. Granted, it’s not massively convincing, but it is there, and this is the first return back into this level.
Now, net-net the UK is cutting interest rates. The US are actively on a rate hiking cycle. So, this looks like there’s plenty of potential to the downside. We don’t quite have an entry yet, but as you can see we’ve had several candles into the level with no retracement, so what you’d expect as a minimum is a bit of a retracement. But you want to see prices failing here before you take that trade, and then just stick your stop above that level.
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