This pair is seemingly setting up a supply test with an increased odds of a failure. It just might give us a nice long entry with an optimal risk profile. The long entry, take profit and short areas are highlighted in the chart. The more prudent approach is to take equal measure for risk as for the highlighted result. However, this can be made into a 2R setup if price action shows validation signs.
Trade active:
Entry 105.41 stop 104.91 and 2R target at 106.41
Trade closed: stop reached:
A perfect example of how a reduction of stop range (aka leveraging up qty by 1/2 and capturing twice the return), that transfers from a 1:1 to a 1:2 in R/R relationship, diminishes ones odds for a winning trade.
Comment:
The fib ratio based extension was bought