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This is the first week of December and also my first trade in forex trading this month. The currency pair GBP/USD is still on a downtrend amit recession for the U.K. looms deeper. This pair have not tested the lowest point yet and there are still room for depreciating further.

GBP/USD was one of the most trendy pair in my chart this afternoon, with GBP/JPY almost on par. I was out for some discussions with my friends, and therefore traded this pair using my laptop. Hope you won’t find the chart hard to read as it was too wide. With the Weekly and Daily Pivot both above the price, we can see the past few candles have been strongly resisted by the daily pivot point.

The 23MA is almost the same level as daily pivot point, made it higher possibility that price will go down. Moreover, the stochastic and MACD is down too. So I shorted the pair at 04:46 GMT at the price of 1.4750, with stop loss 35 pips, target profit 70 pips, therefore a risk to reward ratio of 1:2. Not too convinced that this pair will go too much beyond S1 level, thus had the target profit just above S1. Traders let me know what’s your comments on this trade. Let’s see what will happen to the result of this trade.