Ever wondered how to trade GBPUSD Forex currency pair using supply and demand imbalances? It is imperative to understand why and how currency pair moves for the development of each Forex trader. Typically, price moves owing to supply and demand imbalances; and which is why, it’s essential for every trader (especially beginner) to grasp the concept first. We at Set & Forget can help you learn Forex trading step by step.
As explained in a previous GBPUSD Forex analysis posted in blog’s trade ideas, we have been looking to go long on GBPUSD ever since monthly demand level gained control. You can read the original GBPUSD Forex analysis here. New updated analysis were posts after that one. New updates are done in the Set and Forget trading community every week.
Monthly demand level around is in control. Long term shorts are not allowed. We are expecting GBPUSD Forex cross to keep on rallying from that monthly demand imbalance around 1.2500. It was going to take some time for price to rally, it’s been almost four months already. No matter how many bad or good news created with the Brexit problem, supply and demand imbalances rule and control the markets because they are created by institutions and professionals and not by retail traders. We expected a reversal from that GBPUSD Forex cross pair monthly demand and new weekly and demand demand imbalances on the way up. Long term long bias probably in a couple of months.
Price action is the only non-lagging indicator that exists. If GBPUSD monthly candlestick closes today at 1.2500, it just cannot un-close tomorrow at a different price, it’s simply impossible. When using lagging indicators, such as moving averages, Bollinger bands, MACD and the like, they change their previous appearances depending on how strong or sharp previous moves have been.
Watch GBPUSD video analysis
Price action goes hand in hand with supply and demand, because every imbalance is made of price action and impulse. Your experience and screen time will help you locate these imbalances that have been created by professional investors. Retailers will usually be on the wrong side of the market, filling the order of the professional investors that know what to do in the markets. Their job is to make money. Most retailers will end up losing their money because they do not have a Forex trading strategy that combines price action and supply and demand. Supply and demand rules the markets and our lives. We are great supply and demand buyers and sellers in our lives when we purchase a new car or a new computer, but when it comes to the financial markets, we do exactly the opposite.
If you want to learn how to trade Forex currency pairs, make sure you are paying attention at the strength of the impulses and where these new imbalances are created. Do not ignore them.
It’s not easy though, but not impossible to recognize the supply and demand imbalances while trading. Did you know that Forex is a high liquid market and there’s nothing that influences it more than the market makers themselves. Join us and learn how supply and demand imbalances can be wisely utilized on markets, such as Stocks, Forex, Futures, ETFs, Commodities and Options. With us you can learn how to use supply and demand zones to locate the correct zone and plan your stock options.
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Set and Forget, its employees, or fellow members. Futures, options, and spot currency and stocks trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex and futures markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell spot Forex, cfd's, stocks or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.