Forex Traders Daily
Trapped Traders Daily Analysis
July 17, 2017
Hello traders, Mark Chapman here, the creator of the trademarked Trapped Traders Concept. Welcome to today’s Trapped Traders Trade of the Day Analysis. Today’s date is Monday, July 17, 2017. Hope you’re well. Hope you had a nice weekend. You enjoyed the sunshine.
And the trap we’re going to take a look at today is a potential long trade on the GBPUSD of all things. We’ve had this level. This is Brexit. This monster drop, and then this level is like super important for the cable. If it gets above there, obviously there’s very little to stop it going across that massive void and that would be quite something obviously.
There’s going to be a hell of a lot of resistance at that level because, for obvious reasons, keeping it below there there’s going to be tons of stops above there. But there was a little bit of a minor level that we’ve just broken above. That was previous support. Broke a little bit there, but became support again in here and then support and then resistance, and then sold off big time. And then came back and then it sold off several times from there. And then in here, this is where the trap occurred because those traders off resistance will be looking to sell, hoping that that would follow through.
This is what I refer to as a trap, which is in the yellow circle. A trap, a break, and then a pullback. And that pullback has plenty of room between here and that massive level. I wasn’t around on Friday unfortunately. I was disappointed when I saw that I wasn’t around when I saw the result of the CPI out of the US. Obviously for those pay attention to that type of stuff, CPI, the inflation numbers are a problem for the Fed and raising interest rates and the data came out.
Came out worse than expected, so as a result of that, the USD weakened massively across the board and GBP was one of the beneficiaries of that. So, taking a little look a little closer in this structure. Here’s another area where traders would’ve got short trading off that trend line again, believing that this was. Respected the trend line in there, pulled back, and then starts to head down. No sooner does it do that, it then absolutely smashes them on the wrong side.
So, if we get some type of pullback in here, this looks like a decent place to get long to be fair because, as I said, that CPI data out of the US was not good news for the greenback.
So, if you’d like to come and join me in my brand new inner circle, click on the link below. I’d love to see you in there. It’s some fantastic information about how we look at trading the financial markets in this way. Take care. Have a good day.