Today I will pick on the EUR/GBP currency pair.
Time to look at shorting this market as well. Place sell orders at 0.8890 with a stop loss at 0.9175 .
Risk management consists of taking profits on half of the position at T1 at the 0.8275 area to take the risk out of this trade and let the rest of the position ride to 0.7545 area. After T1 is hit adjust stop loss to match your appetite for risk. Don't mess with it before that.
The most significant reaction high or low is where the price touches the trendline for the second time.
M
Image courtesy of FxChoice/Metatrader4