GBPUSD Trade Setup – Entry at 1.34708 with Target at 1.27735Entry Point: ~1.34708
Stop Loss Zone: ~1.35734 (roughly 100 pips above entry)
Target Points:
EA Target Point One: 1.31769
EA Final Target Point: 1.27735
---
Technical Observations:
1. Price Action:
The price is consolidating below the 1.34708 resistance level.
Multiple failed attempts to break above suggest selling pressure around this zone.
2. Moving Averages:
Two MAs (possibly 50 EMA and 200 EMA) show a recent crossover, potentially indicating a shift in momentum.
3. Bearish Bias:
Based on the annotated targets, the trader anticipates a reversal from the current level.
A drop to 1.27735 represents a 5.09% move from the entry point.
4. Risk-Reward Ratio:
Risk (Entry to Stop Loss): ~100 pips
Reward (Entry to Final TP): ~700+ pips
Risk-reward is highly favorable (~1:7)
Confluence & Support Zones:
1.31769: Previously tested support/resistance level – a logical intermediate target
1.27735: Historical support zone from early March – final bearish target.
Summary:
This setup is a swing short trade with an attractive risk-reward profile.
Confirmation via bearish reversal candlesticks near 1.34708 would strengthen the case.
Watch out for news catalysts or USD data that might impact volatility and invalidate the setup.
