Identified potential reversal zone on daily time frame as highlighted on chart. I took a fib retracement from peak high to low and a 0.618 comes in line with this zone too. We were into overbought conditions (RSI 7 Period) and after a strong upward move surely its time for at least a pull back? Dropping down to my 4 Hour chart there was a re test of our 'potential zone' with a long wick maybe signalling some downward pressure.
Bearish divergence on the RSI also signalling some weakness. Waited for some bearish price action and entered short at 1.15980, SL 1.16800 and TP 1.15000 For just over a 1:1 risk reward. Looking forward to see how this one plays out and any comments are welcomed. Happy trading everyone
Bearish divergence on the RSI also signalling some weakness. Waited for some bearish price action and entered short at 1.15980, SL 1.16800 and TP 1.15000 For just over a 1:1 risk reward. Looking forward to see how this one plays out and any comments are welcomed. Happy trading everyone