Talking Points:

• GBPUSD has put in for a clean and aggressive technical break, but how far will the move extend?

• Technicals and fundamentals are important when evaluating breakout scenarios

• We discuss the means for evaluating a breakout and apply them to EURUSD, GBPUSD, AUDUSD, NZDUSD and Gold

Expect breakouts? Use the DailyFX Breakout 2 strategy to signal or confirm setups!

What makes for a good breakout? Is there a way to determine whether a break will stall immediately after a technical threshold is crossed or if it instigates a lasting trend? While there are no certainties in trading, we can put the probabilities in our favor by looking for certain elements behind a breakout before we decide whether to jump in. From the technical side, the 'trigger' move should be supported by ample trading room and prevailing trends. Fundamentals play a critical role as they can establish the motivations for follow through. We look at a method for evaluating breakouts and apply it to EURUSD, GBPUSD, Gold, NZDUSD and AUDUSD in today's Strategy Video.

Sign up for John’s email distribution list, here.

Filed Under:
Forex pairs in this Article » EUR/USD, GBP/USD, AUD/USD, NZD/USD, GOLD

comments powered by Disqus