You were not necessarily wrong to buy here, it depends on your strategy. But all that is visible right now is the chart so it looks like you bought because of the prior resistance at the entry price. But this had already been broken by a strong dramatic price rise. Buying before support or resistance has had an impact is high-risk.
TA on short time-frames only is not highly reliable. Right now, and for some time past, AUD has been the strongest major currency, and GBP has been weak.
what is TA mate?
TA is technical analysis, the use of price charts to help in trading decisions.
There is no price action that says it is going to go up. you just recognized a possible buy area. but the way I see it (only from this time frame that you posted), first there was resistance and some kind of evening star (which is a possible sign of a reversal), then some dojis which is indecision and some kind of bearish engulfing which for me plays as confirmation of the resistance. I would at least wait for a bullish engulfing and then see if it will be able to push back up again. If this really was just a pullback or a fake out of the trend line. My opinion 
Hey mate, so I’m not sure of your experience level so I’ll go from the top and explain all I can think of. My general advice would be that the trade should make sense to you. If it doesnt make sense then dont trade it.
I’d like start with if you consistently trade this way then this could be normal variance of your strategy. So you might have a 70% win rate and this loss is part of the 30%. Therefore just keep trading it and nothing was wrong, its just the probabilities playing out. If it’s not a setup then here are some thoughts.
I’ve annotated on your chart to help me discuss the points;
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the overall trend is a downtrend therefore you should be looking for sells. Check the 4hr it might be clearer as there is a high to the left and price is moving down. Maybe even looking for only sells depending on your experience. Buying in a downtrend is difficult and your RR can be limited. You should be looking at the move up just as a deeper retrace before continuing the sell off. Now you might say well it was a short term uptrend so I was buying: read point 2 below.
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So simply speaking you should only buy on an uptrend and sell in a downtrend. Keep the probabilities in your favour. Like I said, it should make sense otherwise dont trade.
Uptrend: is higher highs HH and higher lows HL
Downtrend: lower highs LH and lower lows LL
I’ve circled price on your chart. It closed below previous price therefore it is a lower low. Look above, there is no LL in an uptrend, it’s only in a downtrend therefore you should not be looking for longs. It doesnt make sense. This is pretty basic price action. Wait for a higher low and higher high to confirm the direction.
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when price broke out it did retest your zone where I’ve marked it. There were 2 candles re-testing the zone, the very next candle and there was a green candle later on which got close so that would depend on where you draw your zone. Therefore why do you not go to a lower timeframe looking for a retest and then a green bullish candle to confirm price is rallying and rejecting the zone.
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why do you have a 50ma if you are trading break and retest. Its confusing and may trick you into seeing something that isnt there like thinking price is bullish when its not. Also I know people use it as a ‘support’ so wait for price to tap it and then go long but you didnt wait for that either. Only keep on what you use or require. If all you’re looking at is price structure then a MA is not required.
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Your entry. I’m not sure why you entered here. Break and retest of a zone long entries should be entered when you get candles showing bullish action ie green bullish candles or at the very least green candles. You can go to lower timeframes if you need aswell. This way you know why you entered and you can consistently trade it. Price moved higher, it rejected the zone: boom I’m going long. Secondly your stop loss. Your zone marked is small but your stop loss is massive compared to it. You have a zone for a reason so stick to it. Your stop loss should be just below it if you want but not all the way underneath it. I’m guessing you did that because the candle wicked through. Well if it wicked through its not a good zone so wait for more confirmation. Remember price was resistance now you want it to be support so price should not go through. If it does, it doesnt make sense, so do not trade it until there is a reason to.
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This is something I learnt a while ago and is a little complicated because most people do not come across this. Even I don’t get it but i have a basic understanding. The move up that I circled is an example of price inefficiency. So it’s a fast move up full of green candles and there are no sell bars or wicks down in the move up. This is therefore an inefficent move full of buyers pushing price up causing an imbalance. Price needs to stabilise as there should be buyers and sellers for each candle. Therefore it is likely that price will fall down to stabilise the price. So within there, people call it different things but you will find liquidity voids/fair value gaps/imbalance zones which are basically moves of price where there are no wicks either side to balance the buyers so there is a skip of liquidity. So these voids in price can be drawn as a zone and are areas where price can come back to, either to fill it all or atleast 50%. So this is an area where the retest is likely to be and the bias is those green candles need to be reversed with red candles at some time. It doesnt have to happen immediately but you should be aware that it can happen. It is a little complicated and you can trade without this knowledge but I wanted to bring it up incase you want to learn more. So read up on and watch videos on liquidity voids/price inefficiencies if you’re interested.
I’ll leave it at that. Hopefully it all makes sense.
Now that’s going above and beyond. Very well illustrated.
Just from looking at this chart.
The trend is down.
Price did break the previous lower high where you placed your blue zone but this isn’t a good enough reason to go long. That area doesn’t necessarily become support because it was resistance.
To start considering longs, you should have waited for more confirmation. for example, a higher low to form, a higher high and then look to enter after the next correction is complete.
Basically, buy for the third impulse higher.
This was an aggressive buy on the first impulse that turned out to be a deeper correction before the resumption of the downtrend.
But that is why price moved up there. That impulse breaking your resistance zone did a couple of things.
Existing sellers in profirable positions probably trailed their stops to just above those highs, price pushed higher to trigger them. Shaking them out of their position. Some made a small profit if they sold higher up but many got stopped at a loss if they sold under resistance (blue zone). Smart money is now taking over on the sell.
Also buyers, like yourself enter the market. Smart money is getting more short taking the other side of the trade.
There was enough liquidity here to make most participant hit the buy, either on a stop loss or fear of missing out on the long.
Price then collapsed.
Weak sellers got shaken out and buyers got faked out.
That’s all she wrote.