olly_price
Long

Buy MXNGBP Gartely - great Risk/Reward and good fundamentals

FX_IDC:MXNGBP   MEXICAN PESO / BRITISH POUND
Technicals
We have a Gartely pattern set up here. I am looking to go long at 0.03697, which falls between the 0.786 retracement and 1.272 extension along with 1:1 ratio between the AB and CD legs.
There is also a divergence on the Relative Strength Index from a heavily oversold condition, supporting a spike from around the current price.

Fundamentals
Slumping oil             prices damage the prospect for investment in Mexico’s energy industry, while slowing growth in the US is hurting Mexico more, since the US is Mexico's main export market. However, Mexico has the best economic fundamentals in the emerging market, and is heavily undervalued right now, suggesting either a continued consolidation around the current low, or a rebound from this low. Fundamentally, this is a risky trade and could overshoot into the stop loss, but it could also be potentially very rewarding.

Profit target
I have set an initial profit target based on Fibonacci levels. I expect the second target to be met, and based on the fundamentals above and how they evolve in the coming weeks I will either move the stop loss up to the first profit target if the second is met, or I will close the trade there.
Trade active: Entrance price of 0.03697 has been met.
Comment: SL moved to 0.03620.
Trade closed: stop reached
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