We’re currently experiencing markets with very low volatility and low liquidity, making the currency markets a hostile trading environment. In rough Forex market conditions like this we really have to put our patience to the test and wait for high quality setups to develop.
Bearish momentum on the GBPAUD has triggered a short position for many of the War Room traders moments ago as a bearish breakout trap and reverse setup unfolded. During the asian session, a bullish rally broke the previous daily highs and terminated at an overhanging resistance level.
The market then collapsed back down on itself and sold off heavily back below the previous day lows which triggered a sell position for us. We’ve already got a bearish bias on this market because price is trading on the bearish side of the mean value. So, this price action setup is supported nicely by the rest of the technicals on the chart.
Looking for a minimum of 1:3 risk reward here.