Buy above 1.2633. Stop loss at 1.2483. Take profit at 1.2886.
Reason for the trading strategy (technically):
Price is testing our major support at 1.2633 (Fibonacci retracement, Fibonacci extension, horizontal pullback support, bullish divergence) and we expect a strong bounce above this level to at least 1.2886 resistance (Fibonacci retracement).
RSI (34) sees major support above the 26% level where we expect a bounce from and also sees bullish divergence signalling that a strong bounce is expected.
Reason for the trading strategy (technically):
Price is testing our major support at 1.2633 (Fibonacci retracement, Fibonacci extension, horizontal pullback support, bullish divergence) and we expect a strong bounce above this level to at least 1.2886 resistance (Fibonacci retracement).
RSI (34) sees major support above the 26% level where we expect a bounce from and also sees bullish divergence signalling that a strong bounce is expected.