GBP/AUD price holding 50 EMA on 1-hour time frame and shaping up for a nice reward to risk ratio trade.
GBP/AUD currently retrace and holding the Fibonacci 61.8% level. Confirmation of bullish candle reversal for entry.
- 1 Hour – Above 50 EMA
- 1 Hour – Above 200 EMA
- 15 Minute – below 50 EMA
- 15 Minute – below 200 EMA
- Price colling at 61.8% Fibonacci
- Would like to see price hold and close above 200 EMA with bullish candle for confirmation upside.
Support – 1.80785
Resistance – 50 EMA, 200 EMA, 1.81365, 1.81630
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1.80785
Supporting Entry – 1.80900
Candle Reversals for entry
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 1.80550 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 1.80785 – Target 1 1.81365 = 2.3x Reward to Risk
Optimal Entry 1.80785 – Target 2 1.81630 = 3.4x Reward to Risk
Supporting Entry 1.80900 – Target 1 1.81365 = 1.3x Reward to Risk
Supporting Entry 1.80900 – Target 2 1.81630 = 2x Reward to Risk