This is an ideal short setup with a risk/reward of 1.9. The "Weekly, Daily and 4hr' chart have the same correlation of being bearish. Weekly support is printed at price 1.60378 as well as fib tool to complete a 1.618 short extension. Coincidence, I think not. To enter this trade I would prefer to see price rise to 1.62371 and initiate a sell limit order here (at resistance) in order to have a better stop. From there I can use the same amount of pips for a stop or smaller if wanted. As well as being at ease knowing that if I am stopped out, it is legitimate.
Comment:
Forgot to mention additional analysis of me noticing cash flow for days on end are flowing towards the AUD compared to other countries; while cash flow has the opposite affect on the GBP.
Trade closed: stop reached
