GBPUSD - Trend Continuation Trade *Fibonacci & Trendline*
Here is a fairly high Reward:Risk trade set up for next week.
GBPUSD is approaching the outer bullish trendline for a 3rd touch and this also coincides with the Fibonacci 0.618 retracement zone. This is a very simple trend continuation set up with a target price of 1.35 achieving a high reward ratio.
However! - It takes 3 touches of a trendline to confirm it. So as of now... price could break out and prove this trendline to be false. There are 2 ways you can handle this information.
1) Go for it anyway and accept the risk in return for the reward.
2) Wait for a confirmed bounce off the trendline, wait for the bearish CTL to be broken and then go long to 1.35 which should still provide a good R:R ratio anyway.
Enjoy :)
GBPUSD is approaching the outer bullish trendline for a 3rd touch and this also coincides with the Fibonacci 0.618 retracement zone. This is a very simple trend continuation set up with a target price of 1.35 achieving a high reward ratio.
However! - It takes 3 touches of a trendline to confirm it. So as of now... price could break out and prove this trendline to be false. There are 2 ways you can handle this information.
1) Go for it anyway and accept the risk in return for the reward.
2) Wait for a confirmed bounce off the trendline, wait for the bearish CTL to be broken and then go long to 1.35 which should still provide a good R:R ratio anyway.
Enjoy :)
Comment:
I will be watching this FX pair on market open for any gaps. Potential for a good long entry if price touches and rejects the trendline.
Trade active:
Entered on the gap down... I have added this entry as a separate trade set up.
Comment:
Over half way to target profit now
Comment:
Still holding out for 1.35 ideally