Here we have a valid 2618 trade setup on FX:GBPUSD , which is very close to the completion point (61.8% fib retracement level). First of all market was able to break and close below previous (previous HL) after putting in higher highs (HH) and higher lows (HL). This first break in structure is an early signal of shift in the short-term upward trend. The best stop placement level for this setup would be above the key psychological round number level of 1.54000. Placing stops above this level gives us an unfavorable risk to reward ratio, thus we would have to wait for a little deeper retracement beyond the 61.8% fib level, in order to have a favorable risk to reward for this setup. See the chart above for more details.
NOTE #1: About 2 weeks ago, I posted my overall view on this pair based on daily time frame. Within my analysis I included a potential reversal zone (PRZ) at which I would be looking only for shorting opportunities and this 2618 trade setup happens to be located right at that PRZ. See the chart after this description or under the related ideas section for more details.
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DAILY COULD ACT AS POTENTIAL RESISTANCE: