After a strong rally this pair needs a pullback and here is a good setup on H4 chart that could word fine:
- bollinger band duplication - rsi extremely overbought - ema 200 acting as resistance - near 0.61 fib retracement
SL above 0.61 fib retracement level
Target 1 - middle of bollinger band Target 2 - opposite bollinger band
Regards
*****************DISCLAMER******************************************************************** This is just and idea, not a recommendation to buy or sell. Always do your own analysis before opening a trade. Managing is 60% of a trade, anytime I may decide not to open, close or even stop and reverse a trade depending on price action. Any respectful and constructive ideas are welcome (agree or disagree).
Comments
Koryphaeen
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Nice setup, I support your idea also because of simple structure based technical analysis of price action making lower lows and lower highs and the 61.8 fib retracement. I got short on this one as the setup shows on the below chart:
oleg.golubovich
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IMO the pair will strike up with a stong candle or two prior to noticeable correction.
technicaltrade
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agree!
hatimtai
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Cool setup its already at SL levels
ChetanFX
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Already entered...thanks for the confirmation..
ElPatron.Y
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I've seen RSI's higher than 80... So not that extremely overbought as you say, but I agree it might retrace some but I expect it to plunge together with GBPJPY after that one touched 191.
FullTimeTrader
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RSI is just a confirmation, the main tool here is the bollinger band duplication and ema 55 (w1) and ema 200 combination. Lets see. Regards.
ElPatron.Y
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True RSI tells what happened, but you might see what will happen in it also. To counter the "trend" I use divergence and this divergence so far is not critical enough if you ask me.