After a long period of bearish movement from this pair, it has currently been experiencing some bullish re-tracement. From our analysis we would expect this to retrace as far as the 61.8% level which also lines up with a daily order-block.From that level we will anticipate the resumption of the bearish movement.
The timeframe I enter my trades on with an explanation as to how. The candle highlighted in yellow is the last bearish supply and demand zone prior to the big move down. Once the low of the move can be identified (highlighted in red here) then the fib can be drawn. From this price action is monitored at the 0.5 and 0.618 fib levels. As we can see here the 0.618 ...
Going through H4 and 60M charts, Post Brexit high has been taken indicating a possible change in market structure and bearish sentiment.The last two daily candles have shown strong selling of the pair and if the hourly breaker holds there could be another day of bearish movement. We will be watching the 15M chart carefully on open to catch this move to the pip!
Fib concept is explained in my analysis. It is clear that 0236 is a key support level that has been respected multiple times. Stops have been taken and we are currently at this level again. If price action on the 15M timeframe looks bullish then I will be entering and holding to 1.15 for 5R Trade. Follow my Twitter if you want to discuss this more, @TradingDailyFX