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NDOBObanks

GBPCHF Long (Mean Reversion) with 3X Potential Reason

Long
British Pound / Swiss Franc (OANDA:GBPCHF)  
NDOBObanks Updated   
OANDA:GBPCHF   British Pound / Swiss Franc
Trend Analysis Support and Resistance Trend Lines meanreversion gbpchflong gbpchfanalysis GBPCHF gbpchfbuy gbpchf_forecast gbpchfidea mean_reversal
2
0
trendanalysis supportandresistance trendline meanreversion gbpchflong gbpchfanalysis gbpchf gbpchfbuy gbpchf_forecast gbpchfidea mean_reversal

List of Reasons for potential pull back/mean reversion:

1: The market is over extended and has been moving bearish for almost 3 weeks straight with no pull back. This is more visible on the weekly chart than on the daily chart.
2: The trendline on the daily chart was broken with no retest.
3: Month Support level was broken with no retest around the 1.25*** area

Summary:
The trade has the potential to be a 4:1 RR or more abut this will depend on how deep the pull back is. Targets are set using fib tool. We also have to wait for the market to change from bearish to bull which will be visible on the H4 and Daily chart.
Once the market turn bullish, we will then be able to determine the correct RR of the trade. The trade will be left to run until the target is reached or between 5 to 10 trading days, whichever comes first.
Those who plan to sell the market in its current state must be very careful as smart money might close short some positions on the pair, forcing price to turn bullish, allowing them grab some liquidity.
Comment:
Intraday price just turned bullish on the H4 time frame. We will be watching how the day candle closes. If it closes bullish we will be looking to take the trade during the second half of the London session tomorrow or the first half of the NY session.
Comment:
The manner in which market is currently positioned, the RR for the trade currently around 4:1.
Comment:
We can see a very clear morning star pattern formation on the daily chart which signals the strong probability of a reversal.
Trade active:
Trade entered with RR of 3.5:1. Trade will be left to run until target reach or 9 trading days, which ever comes first.
Trade closed: stop reached:
Trade got stopped out. Onto the next trade
Comment:
Trade got stopped put!!! But price is moving rapidly towards target. We will be looking for a but based on our other strategy.
Comment:
Price reverted back to Monthly Support very rapidly. We expecting to see more bullish price action the upside since the pair has now changed market structure.
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