GBPUSD Bearish Divergence, Shorting Chance for Swing Traders
Updated
Hi
as we can see in this Daily chart that we have reached a consolidation area in GBP where we are now reneging in a monthly resistance Zone and there are total of two Bearish Divergences forming with MACD, where MACD is making Lower Highs and Market is Making Higher High which is a sign of trend reversal and end of the GBP bullish Rally and start of a retracement or even a trend reversal.
both Divergences are specified with Blue and Red Arrows on MACD and Market for better comprehension
I have used Fibonacci retracement tool to find out the areas where it can retrace to.
there are total of two divergences and two Fibonacci bullish waves
I have specified two targets to achieve or two points to retrace the wave
you can also see a Stop Loss level has been set on the chart so we can have some good Risk to Reward ratios (RR) Minimum of 3.5:1 up to our 1st TP zone and we can manage the positions by trilling our stop as the positions progresses
First TP can give you 400 Pips
Second TP can give you up to 1000 Pips
enjoy.
please comment me your opinions
as we can see in this Daily chart that we have reached a consolidation area in GBP where we are now reneging in a monthly resistance Zone and there are total of two Bearish Divergences forming with MACD, where MACD is making Lower Highs and Market is Making Higher High which is a sign of trend reversal and end of the GBP bullish Rally and start of a retracement or even a trend reversal.
both Divergences are specified with Blue and Red Arrows on MACD and Market for better comprehension
I have used Fibonacci retracement tool to find out the areas where it can retrace to.
there are total of two divergences and two Fibonacci bullish waves
I have specified two targets to achieve or two points to retrace the wave
you can also see a Stop Loss level has been set on the chart so we can have some good Risk to Reward ratios (RR) Minimum of 3.5:1 up to our 1st TP zone and we can manage the positions by trilling our stop as the positions progresses
First TP can give you 400 Pips
Second TP can give you up to 1000 Pips
enjoy.
please comment me your opinions
Trade active
very good place to short nowTrade closed: stop reached
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