Trade setups and other nonsense from 
... and 
The GBP/USD is a rocket ship right now and is just blasting off after the Japanese Machine Tools economic report earlier today. Or was it the Wisconsin Cheeze Index? Or the Institute for Economic Trickery’s annual report on the ability of short term economic news to cause a panic? Anyway, here is a chart and a trade idea:
Here is how I see it:
1. A move below the blue trendline is going to eventually happen.
2. When it does, it should lead to a quick move down to the red dashed S/R line.
That red dashed level is simply an old level of horizontal support and resistance that I’ve had on the chart.
A line chart can be really useful for support and resistance studies. But remember that if you are looking for the pair to hit a profit target (or a stop loss) you are going to have to switch back to bar or candlestick charts in order to see the true price spikes.