I am looking to go long on GBPUSD for 170 pips.
The previous week closed as a bullish hammer rejecting off my weekly resistance showing a probable reversal. On daily price is as plenty bullish momentum as it approaches a resistance and descending trendline. Before entry I will be waiting for price to breakthrough and retest this zone. On 4H I can see price has consolidated in the zone before and that price may be forming a cup and handle formation in which I will be using to find entry if the pattern is complete.
My trade will look similar to this:
BUY GBPUSD @ 1.2580
SL @ 1.2530 (50)
TP @ 1.2750 (170)
R:R = 3.4 : 1
Take profit being my next weekly resistance which lines up nicely with weekly 20EMA (previously used as dynamic resistance).
The previous week closed as a bullish hammer rejecting off my weekly resistance showing a probable reversal. On daily price is as plenty bullish momentum as it approaches a resistance and descending trendline. Before entry I will be waiting for price to breakthrough and retest this zone. On 4H I can see price has consolidated in the zone before and that price may be forming a cup and handle formation in which I will be using to find entry if the pattern is complete.
My trade will look similar to this:
BUY GBPUSD @ 1.2580
SL @ 1.2530 (50)
TP @ 1.2750 (170)
R:R = 3.4 : 1
Take profit being my next weekly resistance which lines up nicely with weekly 20EMA (previously used as dynamic resistance).
Comment:
Price bounced instead of breaking, that is one thing I need to start doing in my trading in adapting with the market and different scenarios that could happen rather than just having one idea in mind.
Comment:
Would have been a nice sell haha