7pasos
Long

A very nice buy set up

FX:GBPUSD   British Pound/U.S. Dollar
252 1 1
This thusday the price ended formign what we can call a piercing (candlestick) reversal, looking for the context where this is draw we find the next good confirmations for this signal:
-Failure to break the 1.5020 support zone
-Retracement of the 76.4% at this support
-Gartley acomplished with 61.8% extension

All this together form what we can call a very good trade setup.
The strategy:
For those most risk adverse could use a tight stop loss (because the downtrend that preceded this last rally) at the last low
With a fair 1 to 1 risk reward, at this point should take out the half of the position, in order to do not move upside the stop loss, but let the price the gained space to maneuver.
At the 1.5324 you can decide if you take the half of the remaining position and let the price run again or just move up the stop loss to the break even
And at the final target could be the high of the 1.5606 which could be even extended to the 127.9% extension at 1.5823

Other possibility could be the use of the stop loss at the bottom 1.04830, move the stop loss at break even at 1.5187 and then move the stop loss again to the upside at the 1.5324
7pasos PRO
3 years ago
The most cautios get a good one here as we told, if you get the stop loss too tight then should considere this as a loss.
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