On the H4, with prices moving below the ichimoku indicator and within the descending channel, we have a bearish bias that price will drop to our 1st support at 1.18748 where the pullback support and 38.2% fibonacci retracement are. Once there is downside confirmation of price breaking 1st support, we would expect bearish momentum to carry price to our 2nd support at 1.17638 where the 61.8% fibonacci projection and 161.8% fibonacci extension are. Alternatively, price could rise to 1st resistance at 1.19206 in line with the pullback resistance.
Trading Recommendation
Entry: 1.18748
Reason for Entry:
Horizontal pullback support and 38.2% fibonacci retracement
Take Profit: 1.17638
Reason for Take Profit:61.8% fibonacci projection and 161.8% fibonacci extension
Stop Loss: 1.19206Reason for Stop Loss:
Pullback resistance
