Hi,
pound has been really strong over the past weeks, it's a bit risky to trade against it but i cannot help but make my usual analysis and trade it. The daily structure is represented by the blue box, plus the RSI in the daily is way overbought. So this is what i'm looking for when i seek for a reversal: as we go down on 4H timeframe, you'll se a nice divergence followed by an engulfing candle that should tell us bears are entering the market.
Now price is pulling back and it's giving us a better risk to reward ratio.
Stops above highs, target1 at the retest of the low, target2 to be determined.
If you want to ask questions or share your view, comment beneath.
Otherwise, see you in the next chart!
pound has been really strong over the past weeks, it's a bit risky to trade against it but i cannot help but make my usual analysis and trade it. The daily structure is represented by the blue box, plus the RSI in the daily is way overbought. So this is what i'm looking for when i seek for a reversal: as we go down on 4H timeframe, you'll se a nice divergence followed by an engulfing candle that should tell us bears are entering the market.
Now price is pulling back and it's giving us a better risk to reward ratio.
Stops above highs, target1 at the retest of the low, target2 to be determined.
If you want to ask questions or share your view, comment beneath.
Otherwise, see you in the next chart!
Trade closed: stop reached