timmynorin

GBPUSD - This morning's setup - Another train leaving soon

FX:GBPUSD   British Pound / U.S. Dollar
If you are following me on Telegram (https://t.me/timmynorin) you saw my entry and targets this morning on GBPUSD .

We had a double bottom , with several failed attempts to close below 1.2400 - together with heavily oversold conditions and a historically strong support and resistance area. A good case.

What I was looking for was a pullback that we could profit from with 2 targets.

I entered at Z, target 1 is already hit, profit booked and stop loss moved to break even. My risk to reward is shown on chart.

When we also saw that dragonfly doji candle right after my entry, this case was already closed - the pullback was inevitable.

However, the train has not completely left yet as we could get another possibility to enter (see X mark). That entry is based on a 2618, if that is a strategy that you use to base your entry.

I will not enter again since Im already in, but I wanted to share the idea.

Keep in mind, this is currently a bearish train. We're just looking to catch a station before jumping off again.
Comment: Price just brushed our target 2 before it went back down to retest 1.2400 - which means we have bagged 40 pips on this trade, but the remaining position got stopped out at break even / or minor profit.

There might still be some money on the table here since we have once again failed to close below (see doji on hourly) 1.2400. We also have a 4 hour candle closing soon which has, so far, rejected 1.2400 aswell.
Comment:
Beautiful