On the H4, we can see price approaching the resistance on the stochastic indicator which indicates that price may do a short term reversal to 1st support at 1.16225 in line with the 38.2% Fibonacci retracement. With the overall bullish sentiment with the ascending channel, we may subsequently see price bounce off 1st support back to 1st resistance at 1.16549 in line with the 161.8% Fibonacci extension. Alternatively, we may see price break 1st resistance to 2nd resistance at 1.16664.
Trading Recommendation
Entry:1.16549
Reason for Entry:
161.8% Fibonacci extension and horizontal swing high resistance
Take Profit: 1.16225
Reason for Take Profit:
Horizontal overlap support and 38.2% Fibonacci retracement
Stop Loss:1.16664
Reason for Stop Loss:
Horizontal overlap resistance and 38.2% Fibonacci retracement
