I previously stated I was expecting this to drop a bit more but it seems to have formed some support in the current area but it is at 0.382 FIb so that is fine. I recommend waiting for the MACD to show some more signs of bullishness and EMA's to cross or come very close to crossing before entering a long. TP is at -0.272 Fib and SL just below 0.5 Fib as shown on the chart
GBPSEK is trending hard to the downside, however as per the chart, price is approaching a very strong weekly Support line.
While I accept this is a low probability trade (likely get stopped out as im not willing to sustain massive losses), the Risk/Reward ratio is significant enough to warrant a little speculation.
The ideal set up is;
Reasons I took this trade:
- Double bottom formed on the larger timeframe / Bounce of strong resistance.
- Pair is oversold on many timeframes.
- Tight stop loss / Good R:R (Risk:Reward Ratio)
- Strong BULLISH candle on 1h timeframe ( Piercing Line Pattern & Possible Bullish Hammer )
- MACD crossover
Entry : 11.44453 (roughly)
Stop Loss: 11.39150
Sell limit on this pair . Price currently at support level , I expect a move upward to the marked lines. Last week rejection might be a aggressive entry . However with fundamentals in play we can see price break down without touching our first entry & second . But patient & let price present itself .
These two are called reversal patterns on GBPSEK. It is about the shape of the pattern. This is experience-based knowledge. This does not mean the most recent pattern is bound to reverse. This is not a prediction. It is a probability estimate.
GBPSEK is a very volatile instrument which is much avoided. How strange cuz volatility is needed to make profits (and...