British Pound / U.S. DollarEducation
GBP/USD - Why did I buy?
This is a quick breakdown of my GBP/USD trade I entered today and the reasons behind me decision.
Please NOTE I have only been a trader for 18 months... I am simply sharing my anaylsis and am welcoming to constructive criticism!
So why did we enter?
1. Price after some consolidation returned back down to our trend line (Downside).
2. Trend line met with our key 1.38000 level.
3. This level is an area where we previously saw support.
4. The three candle sticks prior to my entry bar rejected the 1.38000 area.
The candlesticks that formed as we entered the 1.38000 AREA (not line) formed a strong rejection against the downside as we saw previously.
How did I work out my take profit level?
A Fibonacci retracement was placed from the previous/last high that closed below the 1.39000 key level, down to the low of the candelstick prior to entry.
The take profit was then positioned between the 0.71 and 0.786 fib levels.
Please feel free to comment your thoughts and share your wisdom!!!
Please NOTE I have only been a trader for 18 months... I am simply sharing my anaylsis and am welcoming to constructive criticism!
So why did we enter?
1. Price after some consolidation returned back down to our trend line (Downside).
2. Trend line met with our key 1.38000 level.
3. This level is an area where we previously saw support.
4. The three candle sticks prior to my entry bar rejected the 1.38000 area.
The candlesticks that formed as we entered the 1.38000 AREA (not line) formed a strong rejection against the downside as we saw previously.
How did I work out my take profit level?
A Fibonacci retracement was placed from the previous/last high that closed below the 1.39000 key level, down to the low of the candelstick prior to entry.
The take profit was then positioned between the 0.71 and 0.786 fib levels.
Please feel free to comment your thoughts and share your wisdom!!!
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