On the H4, price has broken out of the descending trendline resistance, signifying bullish momentum. However, we can expect a short-term bearish retracement from 1st Resistance in line with 50% Fibonacci retracement, 61.8% Fibonacci projection and graphical overlap towards 1st Support in line with 50% FIbonacci retracement and 100% FIbonacci projection. Our short-term bearish bias is further supported by the stochastic indicator where the %K line is abiding to the descending trendline resistance.
Trading Recommendation
Entry:0.71767
Reason for Entry:
50% Fibonacci retracement, graphical overlap resistance
Take Profit: 0.70957
Reason for Take Profit:
Horizontal graphical overlap support,100% Fibonacci projection and 50% Fibonacci retracement
Stop Loss: 0.72279
Reason for Stop Loss:
61.8% Fibonacci projection and 61.8% Fibonacci retracement
