The EMA gives you direction, the RSI filters for strength. This one works best when GBP/USD is trending clean through the London or New York session.
The core setup
On the GBP/USD M5, the EMA 8 and EMA 21 read short-term momentum. Look for a long when the EMA 8 crosses above the EMA 21, price pulls back a touch, and the RSI holds above 50. A short is the mirror image: EMA 8 crosses below the EMA 21 and the RSI sits under 50.
What matters most
The cross alone is not an entry. The good ones come with a decisive candle body, price that hasn't run miles from the EMAs, and an RSI that isn't stretched to an extreme. Chase a cross when the RSI is already overheated and you'll get whipsawed.
Trade management
The stop can sit around the EMA 21 or past the nearest swing, typically 12-18 pips. Scale the target across 1R and 2R instead of getting greedy while GBP/USD is chopping.
When to stand aside
Skip it when the market is ranging, the EMAs are tangled together, or GBP/USD has just taken a strong news release. The pair moves fast, and it hunts stops just as fast.
Good setup for building discipline: only enter when you've got direction, strength, and a pullback. Backtest it session by session before you trade it live.
Contact: https://t.me/kentfxs
Publishing note: Nothing here is investment advice. Always test on a demo account and take full responsibility for your own risk management.