GBPUSD ran into some Hefty Resistance on May 3. It appeared it was going to Break it and keep running. Instead it ended up being a failed breakout and is failing at the Yearly highs.
On the 60min chart we have broken support which signifies the short term trend is now bearish. As a Trend Trader I will be looking to sell rallies back into Resistance.
When I was doing my Technical Analysis on this pair I ran across this great looking Counter Trend Setup. I'm not a Counter Trend Trader so I will not be taking this setup but just decided to share it anyway.
There is a Cypher lining up in the "buy zone" and 61.8% Fib. I'm sure as price works its way down there we will be able to find an ABCD Pattern maybe on the lower time frames to help us eye up exactly where to place the buy limit.
Recommended Entry Techniques:
Aggressive - Just place a Buy Limit exactly where you want to enter
Conservative - Wait for a double bottom, 3 bar reversal, or a pin bar before entering. Once you get your entry technique you can check the RSI for Bullish Divergence.
Stops - I would recommend doing whatever your trading plan says to do for Counter Trend Trades. I just put a 1 ATR stop on the chart because that seems to be the most Stop placement.
Targets - Again do what your trading plan says. I placed Target #1 at the First Resistance Level (b leg of the Cypher). You could trade it as a conventional Cypher Pattern and have Targets at the 38.2% & 61.8% Fib Retracements.
They way I have the trade setup with entries, stops, and targets it comes out to be a 2.50 to 1.00 Risk to Reward.
On the 60min chart we have broken support which signifies the short term trend is now bearish. As a Trend Trader I will be looking to sell rallies back into Resistance.
When I was doing my Technical Analysis on this pair I ran across this great looking Counter Trend Setup. I'm not a Counter Trend Trader so I will not be taking this setup but just decided to share it anyway.
There is a Cypher lining up in the "buy zone" and 61.8% Fib. I'm sure as price works its way down there we will be able to find an ABCD Pattern maybe on the lower time frames to help us eye up exactly where to place the buy limit.
Recommended Entry Techniques:
Aggressive - Just place a Buy Limit exactly where you want to enter
Conservative - Wait for a double bottom, 3 bar reversal, or a pin bar before entering. Once you get your entry technique you can check the RSI for Bullish Divergence.
Stops - I would recommend doing whatever your trading plan says to do for Counter Trend Trades. I just put a 1 ATR stop on the chart because that seems to be the most Stop placement.
Targets - Again do what your trading plan says. I placed Target #1 at the First Resistance Level (b leg of the Cypher). You could trade it as a conventional Cypher Pattern and have Targets at the 38.2% & 61.8% Fib Retracements.
They way I have the trade setup with entries, stops, and targets it comes out to be a 2.50 to 1.00 Risk to Reward.