Yesterday, I took a clean trade on GBPUSD, and I wanted to break it down for you step-by-step so you can see the thinking behind it and maybe pick up some tips for your own trading.
This trade used a mix of simple technical analysis, a bit of higher-timeframe context, and patience — something every new trader should practice! Let’s dive in. (view here)
Step 1: Starting with the 15-Minute Chart – Marking Asia High and Low
I always begin my day by heading straight to the 15-minute chart and marking out the Asian session high and low. This gives me my first key structure for the day — a basic range where price has been accumulating overnight.
Why do I do this?
Because liquidity often builds up around these levels, and we commonly see price either sweep one of these zones (a false breakout) before moving the real direction, or consolidate further before a breakout.
So yesterday, I drew out the Asia high and low box — nice and clean.
Step 2: Understanding Market Structure – Higher Timeframe Confirmation
Before I looked for entries, I zoomed out to the 1-hour and 4-hour charts to check market structure.
Was the market trending up or down? Were we forming higher highs and higher lows (bullish), or lower highs and lower lows (bearish)?
This context helps massively. You don’t want to be trading against the dominant flow of the market — even if the 15-minute setup looks tempting.
In this case, higher timeframes showed a clear bullish structure, so I had a bullish bias as I went into the day.
Step 3: Fundamentals Check – What’s on the Calendar?
This is super important and often overlooked by technical traders. Before I hit buy or sell, I always check the economic calendar for any red flag news — big announcements, interest rate decisions, CPI data, etc.
Yesterday had some medium to high-impact GBP news, so I made sure I was aware of the timing. No surprises = less stress in a trade.
Pro tip: News can create the fakeouts that sweep Asia highs/lows — so having the timing in mind helps avoid getting caught on the wrong side.
Step 4: Waiting for My Confluences
Once the Asia range was clear and market structure was set, I waited for a liquidity sweep.
In this case, price swept the Asia low, grabbing liquidity below the range. This lined up beautifully with:
✅ Higher timeframe bullish market structure
✅ A bullish engulfing candle (confirmation)
✅ Strong entry at a key demand zone
✅ Fundamentals lining up with possible GBP strength
✅ Clear risk management setup
Everything lined up. That’s when I pulled the trigger.
Step 5: Executing with a Solid Risk-to-Reward
I entered the trade with 1% risk and targeted a clean 3:1 reward. Why 3:1?
Because it gives me more room to be wrong and still come out ahead in the long run. One good trade like this can cover two small losses and still leave me in profit.
I managed the trade by moving my stop to breakeven once we reached 1:1, and then just let it run.
Final Thoughts for Beginners
This trade wasn’t just luck — it was about waiting for the right confluences to line up, not rushing into anything, and respecting structure.
If you’re learning to trade, here are a few lessons you can take from this:
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Always mark Asia highs and lows. It’s a simple but powerful trick.
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Zoom out — higher timeframes give you the real picture.
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Don’t ignore the news. It can ruin great technical setups.
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Be patient. Wait for confluences.
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Stick to your plan and manage risk like a pro.
I hope this breakdown helped you see the thought process behind a clean, structured trade. If you found this useful or want more trade breakdowns like this, feel free to drop a comment or message me!
Happy trading,
