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Fishing GBP/USD at Night: Effective Trading Strategy

For traders fond of the GBP/USD currency pair, this trading strategy could add to your earnings. GBP/USD is one of the most traded pairs in the forex market. But how can you trade GBP/USD simply yet effectively? Here's a strategy worth trying, especially for those keen on the Sterling currency pair.

Why Fish GBP/USD at Night?

Firstly, why choose nighttime for trading GBP/USD? Because during the night, trading between the UK (GBP) and the United States (USD) is highly active, especially during the overlap hours between the London and New York markets. The busiest period is typically between 7:00 PM - 10:00 PM WIB. This strategy capitalizes on significant and rapid price movements, making it best suited for nighttime trading, especially during market overlap hours.

GBP/USD Night Trading Technique

Currency Pair: GBP/USD
Indicator: Relative Strength Index (RSI) period 10
Timeframe: H1
Default Target Profit (TP): 10 pips
Default Stop Loss (SL): 30 pips
Margin: Adjusted, but preferably not more than 2% of your capital.

The RSI indicator is available on most forex trading platforms, including MetaTrader4 (MT4), and is easy to install. Open your platform, display the GBP/USD currency pair on the H1 timeframe, and then attach the RSI indicator with a period of 10.

Once the setup is complete, focus your attention on the 25 and 75 levels on the RSI indicator, indicated by the purple area in the image or a similar area on your trading platform. Wait until the price crosses above the 75 level or below the 25 level (exiting the purple area), then take action according to the following rules:

• Open a Sell position when the price revisits the 75 level.
• Open a Buy position when the price revisits the 25 level.

The RSI indicator alone is already a reliable technical trading tool. However, combining it with other indicators like the Moving Average (MA) periods 4 and 13 can enhance signal accuracy. The crossover between MA-4 and MA-13 provides a Sell signal if MA-4 crosses below MA-13 and a Buy signal if MA-4 crosses above MA-13.

Additionally, pay attention to the schedule of significant fundamental news releases. During the release of important fundamental news, price movements can become unstable, and technical indicators may be less accurate. Nonetheless, by focusing on the 25-75 levels on the RSI, there's still potential to capture good trading opportunities.

Trading the GBP/USD at night is an intriguing choice for traders seeking additional opportunities. However, it's important to always observe risk management and avoid trading during crucial fundamental moments. By adhering to rules and discipline in executing the strategy, you can increase your chances of success in trading GBP/USD at night.


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