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.
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