Entry Point: Observing the 4-hour chart, My entry is strategically placed at the 0.75 Fibonacci level, coinciding with the gold line. This area is significant due to its confluence with the recent upswing's retracement, offering a robust support zone for a potential rebound.
Stop Loss: Positioned just below the lower Fair Value Gap (FVG), our stop loss aims to give the trade enough room to weather potential volatility while protecting our capital from a larger downside movement.
Take Profit: Aiming for a high reward scenario, our take profit is set at the 1.72913 level, which aligns with the previous swing high. This objective leverages the daily chart’s bullish momentum, aiming to capitalize on the continuation of the upward trend.
Rationale: The daily chart indicates a bullish momentum, which we expect to carry over to the 4-hour timeframe. bolstered by the presence of indecision candles on lower timeframes, hinting at potential upward movement. These candles represent market hesitation, serving as additional confluence for our bullish bias - The choice of the 0.75 Fibonacci retracement is based on historical price responsiveness, providing a compelling risk-to-reward setup.
Risk Management: As always, it's crucial to manage your trade according to your personal risk tolerance. Adjust your position size to ensure that if the stop loss is hit, it does not exceed your maximum allowable loss per trade.
This plan marries technical precision with an overarching bullish view, forming a cohesive strategy geared towards capturing GBP/CAD’s upside potential.
Stop Loss: Positioned just below the lower Fair Value Gap (FVG), our stop loss aims to give the trade enough room to weather potential volatility while protecting our capital from a larger downside movement.
Take Profit: Aiming for a high reward scenario, our take profit is set at the 1.72913 level, which aligns with the previous swing high. This objective leverages the daily chart’s bullish momentum, aiming to capitalize on the continuation of the upward trend.
Rationale: The daily chart indicates a bullish momentum, which we expect to carry over to the 4-hour timeframe. bolstered by the presence of indecision candles on lower timeframes, hinting at potential upward movement. These candles represent market hesitation, serving as additional confluence for our bullish bias - The choice of the 0.75 Fibonacci retracement is based on historical price responsiveness, providing a compelling risk-to-reward setup.
Risk Management: As always, it's crucial to manage your trade according to your personal risk tolerance. Adjust your position size to ensure that if the stop loss is hit, it does not exceed your maximum allowable loss per trade.
This plan marries technical precision with an overarching bullish view, forming a cohesive strategy geared towards capturing GBP/CAD’s upside potential.