GBP/USD technical signals are starting to line up supporting the upside possibility.
GBP/USD has sold off approximately 800 pips since the high made in September, and meeting with historical clustering with the 61.8% Fibonacci from last major range and divergence on the daily.
- Daily – Divergence between lower lows and lower highs
- Daily – zone
- Daily – Fibonacci 61.8 % of June low – September high
- Price holding below the 200
- Price holding above the 50
Support - 1.26600, 1.27110, 50
Resistance – 200 , 1.28747, 1.30000
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1.27450
Supporting Entry – 1.27600
Candle Reversals for entry
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 1.26945 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 1.27450 – Target 1 1.28747 = 2.5x Reward to Risk
Optimal Entry 1.27450 – Target 2 1.30000 = 5x Reward to Risk
Supporting Entry 1.27600 – Target 1 1.28747 = 1.5x Reward to Risk
Supporting Entry 1.27600 – Target 2 1.30000 = 3.3x Reward to Risk