On the weekly chart GA has been making higher low levels from the end of 2016, putting up a strong bullish trend that has lead price from 1.60-s to 1.88 previous high level. In the long term I can see the price making a new high at 1.90 - 1.92 level in 2019. Based on purely the fact that the last weekly candle closed above the 18 perioud MA (Red Line), gives a strong bullish sentiment and confirms the trend reversal and a new Higher low.
On thursday we saw a daily break and close above the 1.80441 daily resistance level, that seemed to act as a neckline for the inverse H&S pattern. Friday price followed-up the broken neckline, tested it as a new support level and reversed back to the upside, which confirms the level as a valid key level. Weekly closed just below 1.8200 Monthly key level, which previously acted as monthly support. If bullish run continues, I will be targeting 1.8400 and 1.8700 regions.
Now looking forward to see what the price will do on monday. I am currently looking for medium and long term trades on this pair. So the perfect entry is not as important, but always good to have a great risk to reward ratio on any trade taken. There are few ways I see this going forward.
- Price breaking 1.8200 monthly resistance and entering a trade upon a retest.
- Price rejecting monthly resistance and retracing back lower towards broken daily resistance and 1.8000 psycological level. This is where I would place my entrys if the support confirms my bias.
- Fib retracement levels 61.8 and 78.6 align with previous resistance levels, this would be the ideal entry strategy for long trade. Even the fib extensions align with first target 1.8400 level. So this is the trade I am looking for.
My strategy in finding a long trade on GA is to get in as low as possible and hold it for the next weeks, targeting 1.84 -1.87 levels. Looking for daily candle closures to ensure a strong confirmation on my bias. Daily close above 1.8200 I will be looking to enter at a retest. If price retraces lower, I will be looking for bullish candle closures at previous resistance and fib retracement levels.
Stops to be placed 10-30 pips below support levels or previous higher low levels.
On thursday we saw a daily break and close above the 1.80441 daily resistance level, that seemed to act as a neckline for the inverse H&S pattern. Friday price followed-up the broken neckline, tested it as a new support level and reversed back to the upside, which confirms the level as a valid key level. Weekly closed just below 1.8200 Monthly key level, which previously acted as monthly support. If bullish run continues, I will be targeting 1.8400 and 1.8700 regions.
Now looking forward to see what the price will do on monday. I am currently looking for medium and long term trades on this pair. So the perfect entry is not as important, but always good to have a great risk to reward ratio on any trade taken. There are few ways I see this going forward.
- Price breaking 1.8200 monthly resistance and entering a trade upon a retest.
- Price rejecting monthly resistance and retracing back lower towards broken daily resistance and 1.8000 psycological level. This is where I would place my entrys if the support confirms my bias.
- Fib retracement levels 61.8 and 78.6 align with previous resistance levels, this would be the ideal entry strategy for long trade. Even the fib extensions align with first target 1.8400 level. So this is the trade I am looking for.
My strategy in finding a long trade on GA is to get in as low as possible and hold it for the next weeks, targeting 1.84 -1.87 levels. Looking for daily candle closures to ensure a strong confirmation on my bias. Daily close above 1.8200 I will be looking to enter at a retest. If price retraces lower, I will be looking for bullish candle closures at previous resistance and fib retracement levels.
Stops to be placed 10-30 pips below support levels or previous higher low levels.
Comment:
Entered long based on morning star formation on the 1h chart from 1.8200 monthly level. Targeting 1.8400, stops below previous low at 1.81675