The white arrow derives from a gap level (.86) which failed to close in May 2017. Since then we've seen price nearly touch twice (yellow arrows @ .862). The second near touch was an unconvincing move up. Price closed below the gap level on Feb 27th and followed with consolidation.
I know it looks convoluted, but both fib extensions from the the most recent swing highs (.883 & .87) to the recent swing low of .855 land on the .382 and just short of the .786 from the high of the most recent daily candle.
Put it simpler terms, we are still in a downtrend and we are selling on a pull back.
Assuming I sell around current price levels, my target is .845 with a stop at .8685 giving us roughly a 2r.
I know it looks convoluted, but both fib extensions from the the most recent swing highs (.883 & .87) to the recent swing low of .855 land on the .382 and just short of the .786 from the high of the most recent daily candle.
Put it simpler terms, we are still in a downtrend and we are selling on a pull back.
Assuming I sell around current price levels, my target is .845 with a stop at .8685 giving us roughly a 2r.
Comment:
Missed my stop by about 25 pips on the most recent spike down. I'm tempted to manually close my trade considering we are on the verge of the Brexit vote. With the recent bullish Brexit news priced in I must now consider how traders will react tomorrow. Technically, I still feel my price target will reach but given how fast and strong the trade moved in my favor, I can practice some flexibility here.