GBP Analysis for Potential Buy or Sell Entry
Overview: We’re focusing on a POI (Point of Interest) zone where we expect potential price reactions. This POI zone represents a key support or resistance area, and it will determine whether we enter a buy or sell position depending on how the market price reacts to it.
Plan:
1. If the market price finds support at the POI Zone:
Look for confirmation signals (such as bullish candlesticks, break of recent highs, or volume increases).
Enter a Buy position targeting higher levels, aiming for a positive risk-reward ratio. Identify potential target levels based on previous resistance or Fibonacci extensions.
2. If the POI Zone fails as support:
Wait for the price to retrace back towards the POI zone, testing it as resistance.
Enter a Sell position targeting lower levels, especially if bearish patterns or momentum indicators confirm the move.
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Key Reminder:
Trading always involves probabilities, not certainties. No strategy is foolproof, and risk management is essential. Make sure to place stop-losses in appropriate positions to protect your capital, and remember that disciplined execution is key.
