Technical Analysis:
The
EURGBP
pair presents an intriguing opportunity for a long position based on the Fibonacci retracement tool and key support levels identified through historical price action.
Scale-in Levels: I have delineated two primary scale-in levels for entry into the trade: the first at the 89% Fibonacci retracement level and the second at the 75% level. These are not just arbitrary numbers; they are meticulously selected regions where price reversals have a high probability.
Confluence Factor: The 75% retracement level boasts a confluence with a Daily fair value gap, enhancing its significance as a robust support zone and an ideal entry point for long positions.
Price Objective: The initial take-profit (TP) target is set at an upper fair value gap. This area is expected to act as a magnet for price, providing us with a reasonable expectation for the trade's upward potential.
Risk Management: A clearly defined stop loss level, 'Level 1', is positioned at the bottom of the chart. This level is chosen to minimize potential downside while allowing the trade enough room to breathe.
Trade Rationale:
The rationale behind choosing the 75% Fibonacci level is bolstered by its alignment with a Daily fair value gap, implying a stronger level of interest and a possible pivot point for the currency pair.
The decision to target an upper fair value gap for the first TP is derived from historical price tendencies to fill such gaps, offering a logical profit-taking zone.
Execution Plan:
Entries: I will be scaling into the trade at the two mentioned Fibonacci levels. The approach allows for a measured entry, improving the average price in the context of ongoing price action.
Target: The primary TP level is strategically set where the price has a historical precedent of returning, aiming to capitalize on this predictable pattern.
Stop Loss: The stop loss is not only technically justified but also represents a level beyond which the underlying trade premise is invalidated, thus warranting an exit.
Conclusion:
This EUR/GBP setup is crafted with a fusion of Fibonacci levels, fair value gaps, and stringent risk management, embodying both an anticipatory entry strategy and a logical exit plan. We're looking for the market to acknowledge our levels of interest, giving us the nod to capture gains in a structured and disciplined manner.
The
EURGBP
pair presents an intriguing opportunity for a long position based on the Fibonacci retracement tool and key support levels identified through historical price action. Scale-in Levels: I have delineated two primary scale-in levels for entry into the trade: the first at the 89% Fibonacci retracement level and the second at the 75% level. These are not just arbitrary numbers; they are meticulously selected regions where price reversals have a high probability.
Confluence Factor: The 75% retracement level boasts a confluence with a Daily fair value gap, enhancing its significance as a robust support zone and an ideal entry point for long positions.
Price Objective: The initial take-profit (TP) target is set at an upper fair value gap. This area is expected to act as a magnet for price, providing us with a reasonable expectation for the trade's upward potential.
Risk Management: A clearly defined stop loss level, 'Level 1', is positioned at the bottom of the chart. This level is chosen to minimize potential downside while allowing the trade enough room to breathe.
Trade Rationale:
The rationale behind choosing the 75% Fibonacci level is bolstered by its alignment with a Daily fair value gap, implying a stronger level of interest and a possible pivot point for the currency pair.
The decision to target an upper fair value gap for the first TP is derived from historical price tendencies to fill such gaps, offering a logical profit-taking zone.
Execution Plan:
Entries: I will be scaling into the trade at the two mentioned Fibonacci levels. The approach allows for a measured entry, improving the average price in the context of ongoing price action.
Target: The primary TP level is strategically set where the price has a historical precedent of returning, aiming to capitalize on this predictable pattern.
Stop Loss: The stop loss is not only technically justified but also represents a level beyond which the underlying trade premise is invalidated, thus warranting an exit.
Conclusion:
This EUR/GBP setup is crafted with a fusion of Fibonacci levels, fair value gaps, and stringent risk management, embodying both an anticipatory entry strategy and a logical exit plan. We're looking for the market to acknowledge our levels of interest, giving us the nod to capture gains in a structured and disciplined manner.