Possible Retest & Long Position - GBPCHF - 7.68% R:R
Hi All! Hope you're keeping well and having a great weekend! Just wanted to share a personal analysis I've made on GBPCHF! Please feel free to comment below any questions you may have!
With GBPCHF, I would personally like to see some movement to the downside towards the marked 4hr structure, to retest it as a support for price then to move back and follow the price trend to the upside. As you may not know, the Bank of England has a speech tomorrow which will greatly affect the pound - if the speech is 'hawkish' then we could see some strength for GBP which will support this long position.
You may notice that the fib retracement isn't on the highest wick, which is something I've personally done because I feel that maybe the last two candles on Friday could be very sketchy to work off, especially towards the market close. By doing this though it's lining up perfectly with the structure, and would be nice to get a long from that position. We're also above the 40EMA which I personally work with on minor pairs which will support this - also this could count towards a touch on the ascending trendline (subjective) which could also show support.
I have chosen to have my stoploss at 20pips + 3pips for spreads, and I will be risking 1% of my capital for this trade.
Confluences:
Trendline
Structure
40EMA
Fib Retracement
Conformation
"Pending" 😉
Obviously please do your own analysis, so please don't take this as gospel and please ensure that you use the correct risk management for this trade.
Let me know your guys thoughts!
Cheers
Daniel
Instagram: @DanielJamesFX
Twitter: @DanielJamesFX
With GBPCHF, I would personally like to see some movement to the downside towards the marked 4hr structure, to retest it as a support for price then to move back and follow the price trend to the upside. As you may not know, the Bank of England has a speech tomorrow which will greatly affect the pound - if the speech is 'hawkish' then we could see some strength for GBP which will support this long position.
You may notice that the fib retracement isn't on the highest wick, which is something I've personally done because I feel that maybe the last two candles on Friday could be very sketchy to work off, especially towards the market close. By doing this though it's lining up perfectly with the structure, and would be nice to get a long from that position. We're also above the 40EMA which I personally work with on minor pairs which will support this - also this could count towards a touch on the ascending trendline (subjective) which could also show support.
I have chosen to have my stoploss at 20pips + 3pips for spreads, and I will be risking 1% of my capital for this trade.
Confluences:
Trendline
Structure
40EMA
Fib Retracement
Conformation
"Pending" 😉
Obviously please do your own analysis, so please don't take this as gospel and please ensure that you use the correct risk management for this trade.
Let me know your guys thoughts!
Cheers
Daniel
Instagram: @DanielJamesFX
Twitter: @DanielJamesFX
Comment:
On a reanalysis, I moved the fib-retracement tool to the highest wick, and the structure line more or less lines up well with the 50% level on fib retracement.Feel free to adjust if you wish!
Comment:
We trade, we lose, we learn. Price action hit stop.
Trade closed: stop reached