Hello Traders! Welcome to my post, today we are looking at GBP/USD and we have identified the following confluences to support this high-probability setup:
A very significant Fibonacci zone, in this zone we have a major 38.2% and a minor 78.6% Fibonacci retracement. Major 138.2 Fibonacci extension, and a minor 2.272 and 1.272 Fibonacci extension all lining up in the same area. In the same area we also have a trendline drawn from the weekly chart which is approaching its 3rd touch and a counter-trendline drawn from the weekly chart which has proven its technical significance with multiple touches as support and resistance. Lastly, we have a 5 wave structure which is coming to an end which is projected to complete in the significant fib zone and to confirm the 5 wave structure we have formed strong bearish divergence between waves 3 and 5.
Stop Loss: 1.32200
Targets: 1.28000, 1.27000, 1.26000, 1.24500
Risk to Reward Ratio: 4.3
Thank you for reading this idea, I hope you learned something and I hope that this analysis will be beneficial for your trading.
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Keep in mind that the analysis provided is not 100% accurate and that you can never be certain with the markets. This information given is not financial advice, always do your own research.
A very significant Fibonacci zone, in this zone we have a major 38.2% and a minor 78.6% Fibonacci retracement. Major 138.2 Fibonacci extension, and a minor 2.272 and 1.272 Fibonacci extension all lining up in the same area. In the same area we also have a trendline drawn from the weekly chart which is approaching its 3rd touch and a counter-trendline drawn from the weekly chart which has proven its technical significance with multiple touches as support and resistance. Lastly, we have a 5 wave structure which is coming to an end which is projected to complete in the significant fib zone and to confirm the 5 wave structure we have formed strong bearish divergence between waves 3 and 5.
Stop Loss: 1.32200
Targets: 1.28000, 1.27000, 1.26000, 1.24500
Risk to Reward Ratio: 4.3
Thank you for reading this idea, I hope you learned something and I hope that this analysis will be beneficial for your trading.
If you're interesting in joining my free telegram channel where I provide free trade signals and updates, send me a message on here.
Feel free to share your opinion in the comments section below or send me a message in regards to any questions, feedback or suggestions that you may have.
If you consider this valuable to you, please show your support by hitting the Like button and Follow River Think for trade updates and more trade ideas!
Keep in mind that the analysis provided is not 100% accurate and that you can never be certain with the markets. This information given is not financial advice, always do your own research.