Trading Support And Resistance - Sunday, Jan. 24

Key Support/Resistance Levels for Popular Pairs

We teach that trades should be entered and exited at or very close to key support and resistance levels. There are certain key support and resistance levels that can be watched on the more popular currency pairs this week.

Key Support and Resistance Levels

Let us see how trading reversals from one of last week’s key levels would have worked out:

GBP/USD

We had expected the level at 1.3527 might act as support, as it had acted previously as both support and resistance. Note how these “flipping” levels can work well. The H1 chart below shows how the price rejected this level with a bullish doji candlestick structure during last Monday’s London session, marked by the up arrow in the price chart below, which is typically a good time to be trading major currency pairs such as this one. This trade has been very profitable, achieving a maximum positive reward to risk ratio of approximately 9 to 1 so far based upon the size of the entry candlestick.

GBP/USD Hourly Chart

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