GBPUSD H4 CHANNEL SELL - GOOD ENTRY ON SMALL CABLE PULLBACK? £$
Diagonal Rays drawn to create channel alongside drawn Horizontal Lines at key Support and Resistance-
Diagonal channel formed within 2nd week of September and price action as paid much respect thus far.
3 Fibonacci Retracement levels drawn from key High/Low points within the last month,
The support and resistance lines share strong confluence with the fib retraces and can show us areas of price which can be key for reversals or pivotal points.
Overlapping fib levels or "Fib Clusters" also highlight and strengthen key areas.
Diagonal ray crossing through the channel was plotted on daily chart from 01-06-2015 -
This diagonal ray acted as strong support for GU throughout the summer until a break in late August which sparked a bull rally to 1.516, The support has now turned into resistance.
Commodity Index Channel show us heading south after testing Overbought levels with key levels highlighted.
Short orders set in 1.55 area will be paying particular attention to open and how price ranges between the two 61.8% fib levels price is currently sat in, stop above last H4 candle, will consider entry dependant on smaller timeframe Price Action.
If potential target is hit - (61.8% retrace level of initial monthly High to Low) a trailing stop will be initiated from then on, Potential long opportunity from that point to be considered also.
Good luck and happy trading! :)
Diagonal channel formed within 2nd week of September and price action as paid much respect thus far.
3 Fibonacci Retracement levels drawn from key High/Low points within the last month,
The support and resistance lines share strong confluence with the fib retraces and can show us areas of price which can be key for reversals or pivotal points.
Overlapping fib levels or "Fib Clusters" also highlight and strengthen key areas.
Diagonal ray crossing through the channel was plotted on daily chart from 01-06-2015 -
This diagonal ray acted as strong support for GU throughout the summer until a break in late August which sparked a bull rally to 1.516, The support has now turned into resistance.
Commodity Index Channel show us heading south after testing Overbought levels with key levels highlighted.
Short orders set in 1.55 area will be paying particular attention to open and how price ranges between the two 61.8% fib levels price is currently sat in, stop above last H4 candle, will consider entry dependant on smaller timeframe Price Action.
If potential target is hit - (61.8% retrace level of initial monthly High to Low) a trailing stop will be initiated from then on, Potential long opportunity from that point to be considered also.
Good luck and happy trading! :)
