GBPUSD 4 hour S/R trade

6 апр. 2023 г.

Between April 3rd & 4th GU pushed through a strong 4H resistance level at 1.24.
- GU is currently trending higher and holding well above the 4H 200 EMA and
- retracing back towards 1.24 resistance level now turned support.
- 1.24 price level near the 4H 50 SMA level
- a pull back to 1.24 is a 50 retracement on the current swing up.

I am expecting a retest of 1.24 and the 50 SMA before GU continues back to the upside with a target of 1.26.

Idea is to enter with a 1H rejection off the 1.24 area.

Possible the trade may not trigger due to fresh demand zone located near the 1.23 area, if so this trade becomes my back up trade.

Also due to the demand zone created on April 3rd price may not achieve the intended target. A possible way to manage this trade is to trail the stop and cut risk in 1/2 at 1:1 and BE at 2:1. In addition take 15% off at 1:1, then again at 2:1. See if the remaining 70% will make it to the target.