GBPCHF Lower Bounce Pattern and Retesting Break.
An idea on GBPCHF that is waiting to trigger. We had a nice 4 hour break and close below the support/flip zone of 1.2165.
Overall this pattern shows a lower bounce type pattern, where buyers came in at support and tried to create a new higher low. It did not work and the sellers stepped in. Just reading price this way can be illuminating.
So now we are retesting this break. So something to remember is that a retest is not confirmed until we make new swings. In this case, we would need to see new lower lows or a break below 1.2098 ti confirm the retest.
If you sell in now, you will have a better risk vs reward ratio. However, if you await for the break, the probability is much more higher for success. Trading is a business of probabilities. There is no prize in getting in first. We are here to make money with high probability trades. Period.
I would watch to see how price reacts at 1.2046 if I do enter this trade. Target would then be the 1.1950 zone.
Overall this pattern shows a lower bounce type pattern, where buyers came in at support and tried to create a new higher low. It did not work and the sellers stepped in. Just reading price this way can be illuminating.
So now we are retesting this break. So something to remember is that a retest is not confirmed until we make new swings. In this case, we would need to see new lower lows or a break below 1.2098 ti confirm the retest.
If you sell in now, you will have a better risk vs reward ratio. However, if you await for the break, the probability is much more higher for success. Trading is a business of probabilities. There is no prize in getting in first. We are here to make money with high probability trades. Period.
I would watch to see how price reacts at 1.2046 if I do enter this trade. Target would then be the 1.1950 zone.