GBPUSD has closed under daily level. we have had 4 wicks to the previous 4hr highs before closing back towards the lows.
pair could possibly fall back down towards next daily level.
RR = 2.6
SL above 4hr highs
Take profit at 4hr levels
SET UP ON HOURLY TIMEFRAME.
LOOKING TO BUY OFF ZONE IF REACTION OFF ZONE MEETS CRITERIA.
RISK/REWARD = 5
PROFIT TARGET AT PREVIOUS 4HR HIGH AND 2ND TARGET AT DAILY LEVEL
SL JUST BELOW PREVIOUS WICKS TO TEST 200 EMA.
Possible short opportunity on GBPUSD. Looking for a entry around the 61.8 zone. zone was previously very strong area of support and resistance. if price can come up to that level and reject the price of around 1.29800 we have a set up to go short with a RR ratio of 3.
GBPUSD has strong daily support at 1.29800-1.29900. The same zone has confluence with the 618 fib level. If daily support is respected then we could see price move towards 1.31500 area which is in alignment with the fib -.618 extension. RR 4.25.
After Brexit news on Friday we saw a large bullish move. We have seen a retracement come to the 618-700 level. I am now looking at the possibility of GU reaching the fib extension as we have not broken previous bullish structure to indicate we are looking for shorts. Tight stop loss with high reward TP at the weekly trendline.
GBPUSD short opportunity upon the release of news on the day the UK leaves the EU. we have seen the .618 hold on the 4hr time frame and daily with nice rejection. News could mean we break our recent lows and head towards 1.28000.
Looking at a bearish bias to take GBPUSD down to near 1.28000. Daily Fib reaction on the 618 and again on the 4hr fib. If zone and trend line breaks we can expect a bearish run downwards. Also considering UK leaving the EU on the 31st of January, this could help us move downwards towards our target.