Trade Plan (Pending): I am selling GBP/USD at 1.2600
Trade Plan (Pending): I am selling GBP/USD at 1.2600
Although GBP/USD traded to the lowest level in 105 (trading) days yesterday buyers have emerged at 1.2427. This is the projected downside support for the AB leg in a daily Bat formation. A common retracement level for the BC leg is 38.2% of the last decline. This price point is located at 1.2605. Bespoke resistance is located at 1.2605.
Moving down to the four-hour chart we have a 61.8% pullback level at 1.2602.
Conclusion: there is ample scope for an upside correction. I look for 1.2602 and 1.2605 to cap buying interest. The medium-term focus remains bearish with the Bat formation not completing until 1.2138.
I am looking to split this trade setup into two units.
Selling at 1.2600 (Trigger valid until the close on Friday 19th April)
SL: 1.2660
TP1: 1.2430 (R rate of 2.83)
TP2: 1.2140 (R rate of 7.67)
Although GBP/USD traded to the lowest level in 105 (trading) days yesterday buyers have emerged at 1.2427. This is the projected downside support for the AB leg in a daily Bat formation. A common retracement level for the BC leg is 38.2% of the last decline. This price point is located at 1.2605. Bespoke resistance is located at 1.2605.
Moving down to the four-hour chart we have a 61.8% pullback level at 1.2602.
Conclusion: there is ample scope for an upside correction. I look for 1.2602 and 1.2605 to cap buying interest. The medium-term focus remains bearish with the Bat formation not completing until 1.2138.
I am looking to split this trade setup into two units.
Selling at 1.2600 (Trigger valid until the close on Friday 19th April)
SL: 1.2660
TP1: 1.2430 (R rate of 2.83)
TP2: 1.2140 (R rate of 7.67)