This GBP/USD strategy looks for a breakout in the 15-minute time frame. We look for a previous range that was set either in the previous day’s Asian trading market session or if the price was trapped in a trading range for longer, we use that range as our points of interest. It does not matter how long the price is trapped inside of a range because this strategy is simply a breakout strategy. So we have to make sure our range is determined before we can spot our break out.
I have also explained that we use the London session primarily to find our entry. Please note that If we do not find an entry in the London session, we then keep our eyes on the chart throughout the day as sometimes the entry can come a little later, and in some cases we even see it happen during the New York market trading session. Now, what is important to note is that ranges do not need perfectly horizontal support and resistance zones.
We can have all types of Support / Resistance zones. Sometimes these zones work at different angles. As long we can see price respecting these zones and bouncing off of them for a minimum of two taps.
Once we have established a minimum of two taps, we watch and see if we see a breakout during the opening market sessions.
