1. Trade Type:
This is a Sell (Short) trade on the GBP/AUD currency pair.
2. Key Chart Analysis:
Entry Zone: The trade is entered around the 2.05978 level.
Resistance Zone: Price has reached a strong resistance area (gray-shaded region), which was previously a supply zone.
Support Zone (Take Profit): The target (TP) is around 2.03313, where a previous demand/support zone exists.
3. Risk-Reward Ratio:
The stop loss (SL) is placed at 2.06559, just above the resistance zone.
The take profit (TP) is at 2.03313.
Risk-Reward Ratio (RRR): This setup has an approximately 1:4 risk-reward ratio, meaning for every 1 unit risked, the potential reward is 4 times that.
4. Trade Rationale:
Bearish Rejection at Resistance: The price attempted to break above the resistance but failed, indicating a potential reversal.
Market Structure: The market shows lower highs, confirming a downtrend continuation.
Supply Zone Confirmation: The price tested the supply zone and started forming bearish price action (possible rejection wicks and bearish candles).
Risk Management: A well-placed stop loss above resistance ensures minimal risk.
5. Trade Execution Plan:
Entry: Short GBP/AUD at resistance (2.05978).
Stop Loss: Placed slightly above the resistance at 2.06559.
Take Profit: Positioned near a previous demand/support level at 2.03313.
Trade Expectation: The price is expected to fall towards the support area if selling pressure continues.
6. Potential Trade Outcome:
If price respects resistance and moves downward, the trade will hit TP for a significant profit.
If price breaks above the resistance zone, stop loss will be triggered, cutting losses.
Final Thoughts:
The trade has a high risk-reward ratio, making it favorable.
It aligns with technical analysis principles (resistance rejection and trend continuation).
Proper risk management is applied to limit potential losses.
This is a Sell (Short) trade on the GBP/AUD currency pair.
2. Key Chart Analysis:
Entry Zone: The trade is entered around the 2.05978 level.
Resistance Zone: Price has reached a strong resistance area (gray-shaded region), which was previously a supply zone.
Support Zone (Take Profit): The target (TP) is around 2.03313, where a previous demand/support zone exists.
3. Risk-Reward Ratio:
The stop loss (SL) is placed at 2.06559, just above the resistance zone.
The take profit (TP) is at 2.03313.
Risk-Reward Ratio (RRR): This setup has an approximately 1:4 risk-reward ratio, meaning for every 1 unit risked, the potential reward is 4 times that.
4. Trade Rationale:
Bearish Rejection at Resistance: The price attempted to break above the resistance but failed, indicating a potential reversal.
Market Structure: The market shows lower highs, confirming a downtrend continuation.
Supply Zone Confirmation: The price tested the supply zone and started forming bearish price action (possible rejection wicks and bearish candles).
Risk Management: A well-placed stop loss above resistance ensures minimal risk.
5. Trade Execution Plan:
Entry: Short GBP/AUD at resistance (2.05978).
Stop Loss: Placed slightly above the resistance at 2.06559.
Take Profit: Positioned near a previous demand/support level at 2.03313.
Trade Expectation: The price is expected to fall towards the support area if selling pressure continues.
6. Potential Trade Outcome:
If price respects resistance and moves downward, the trade will hit TP for a significant profit.
If price breaks above the resistance zone, stop loss will be triggered, cutting losses.
Final Thoughts:
The trade has a high risk-reward ratio, making it favorable.
It aligns with technical analysis principles (resistance rejection and trend continuation).
Proper risk management is applied to limit potential losses.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.