This morning I was looking at GBP/USD (What I am focussing on).
I put in a Buy order as I thought it would be a bullish turn – i got it wrong. Buy point is at the 5th candlestick from the right, sell point (stop loss) is the red candlestick at the most recently finished hour.
Take Profit:1.24755(45 pips)
Sell Price:1.24036(27 pips)
(didn’t do a RRR 1:3 because I was a bit unsure with my confidence). Part of me wonders if my buffer of 27 pips was too small?
This is why I did it:
- Thought I saw a falling wedge pattern(suggesting bullish turn)
- Support band was in place(hard to fall past)
- RSI value was sitting just a fraction above the 30 level of RSI(suggesting bullish turn)
H1 - GBP/USD
I wonder if I was a little early,and maybe the GBP will rise later?
Given the buy point (noted on the chart at the 5th candlestick from the right) what signals would you have used that would have told you to wait, or be sure the price would continue to fall given my insights above?
**Update - I got it very wrong! The bearish trend continue!! Wow.