A further move down of this pair could bring us to the completion of a bulish bat pattern . As always, bat patterns have a pretty good RR ratio, target 1 being approx 1.5 and target 2 approx. 2.5 times the pips we risk.
As this is a setup on the 240 chart, I use a 1ATR stop loss under X.
Excellent, every trader must trade by his own trading plan and RoE. I was taught as well to trade only bats that reach the 50% retracement however I have found that by doing so I missed out on quite some good and profitable trading opportunities. As you mentioned before, of course it needs to be back- or forward tested before you change your rules which is exactly what I did. Any way, as Akil would say, plan your trade, trade your plan ! (and may the pips be with you) :)