Bullish divergence on the H4 using stochastics shows price exhaustion and a well due correction for this pair. Cable should be well supported at the 1.2920 level and on the H1 we see decent rejection of this zone, which could be the start of the reversal of around 120 pips.
Comment:
At the time sterling couldn't find no ground to bounce back from and didn't wait for confirmation for the divergence. Poor setup for my standards as it is going against the downtrend, parallel channel on the H4 i noticed after.
Trade closed: stop reached:
40 pips lost