we are only looking at 4h chart, so this is a very short term trade, couple days-weeks
LONG or SHORT: LONG
ENTRY: 1.608 breakout of recent high
STOP: 1.598 for 110 pips right below our support
TP: TP at 1.63 for 220pips
R:R - 2:1
Trade rationale: 1.6 support has only been set recently but tested multiple times. It has just been tested and starting to crawl back up, and there’s also a RSI and stoch bullish divergence with prices making new lows but indicators indicating higher lows. Overall, GBP/USD has been in a uptrend but making multiple tops at 1.63, currently it’s really trading in a triangle formation, once GBP/USD breaks 1.63 area hence the 1.63 profit target, it will continue its uptrend.
btw if you prefer a more aggressive approach is enter the trade as soon as possible and you set the stops at 1.598 still there you will have very tight stoploss but maximum profit, this is a double-edged sword, there are the chances of breakouts, yet at the same time tighter stoploss and possibly more profit with very high reward:risk ratio
