GBP/USD On Course to Hit 1.3000
The previous post on GBP/USD signaled a buy at 1.27450. We now find ourselves within a 15-minute bull flag for further upside to hit the key level 1.3000.
4 – hour chart is also showing momentum to support the 15-minute trade. GBP/USD has risen 2% since the September low.
- 4 Hour – Reclaimed 200 EMA
- 4 Hour – Price above range
- Within 15-minute range
- Tight defined risk
- Above 50 EMA
- Above 200 EMA
- Entry at the base of compression is superior
- IF: Price hits 1.29800, move stop to break even
- Watching the base of the box is important. If failed, next level for bullish reversal candle is 1.29275
Support – 1.29428, 50 EMA, 200 EMA
Resistance – 1.29800, 1.3000
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1.29342
Supporting Entry – 1.29425
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 1.29211level and violates 50 EMA – 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 1.29342 – Target 1 1.3000 = 5x Reward to Risk
Supporting Entry 1.29425 – Target 1 1.3000 = 3x Reward to Risk