This is a very interesting market for watching - the price bounces from the support zone, which was confirmed in 2016 and 2017 years. RSI tells us about the oversold market conditions. MACD histogram is going to confirm the upward movement.
In spite of strong downtrend, the market has opportunities to move upward. The price has been falling for about four months, and a correction movement from the strong support zone looks logical.
Buy signals can be used from the weekly and lower timeframes. The stop orders must be placed below the support zone. Profit targets should be placed at the resistance levels. Don't forget about proper money management.
great setup! but I'm a bit concerned about hard Brexit and uncertainty around it - Any news suggesting hard Brexit will weaken Sterling even more......what are your thoughts on this?
DLavrov
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@gabrieltlcina, the downtrend can be continued. It is a fact and Brexit will support it. But this idea is based on a possible correction movement. Let's say short/mediume term upward movement in the bearish structure.
TuanMSallay
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it was gone down badly right.
DLavrov
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@TuanMSallay, yes, the price falls but if we talk about the weekly timeframe, it does not mater. For us, it is important to have the price above the local swing low at 1.58750 level. Only if price drops below it, we will have to think about other plan.
TuanMSallay
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@DLavrov, i made an open trade without any TP or SL and still holding it but after news lots of trades hit SL don't know where is the wrong.
DLavrov
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@TuanMSallay, trading without SL can blow up your account. Don't forget about it.