Potential Long Position for GBP/USD_Trade Plan 2017.08.07
Legend for price level, trend line, and rectangle:
Orange > Monthly Level
Dark Gray > Weekly Level
Blue > Daily Level
Red > H4 / H1 Level
Green > M15 / M5 Level
Yellow > M1 Level
Both D1 and H4 are showing the overall trend is still up with price hold above MA200 and major support area 1.29737 - 1.30320.
Currently, for the past 3 days, price pull back from the high 1.32687 and now landed slightly above the support area.
Trade Plan:
If price continues pull back at maximum to Fibo Ret 78.6% confluenced with MA200, show some rejection, forming Higher Low and rejected up, can consider to long the market to follow the potential uptrend continuation.
With Stop Loss 60 pips and Target Profit 200 pips, the potential trade offers 3.33 Reward-to-Risk Ratio.
Keep in alert if price breaks down below MA200 massively, this trade setup may be invalidated.
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