Caught a great break out of the channel yesterday, with a gain of 100 pips. After posting my analysis yesterday I began to notice many people favouring the fact that we were going to drop bellow support and plummet and therefore began to doubt myself. However, we went against the grain and it paid off! This was a great example to never doubt yourself and trust your own analysis.
I would now like this pair to retrace slightly more towards the 0.382 fib and ideally towards the 0.618 as it aligns perfectly with the previous high.
A second way to look at this is that we could be using the false breakout of the channel at 18th Nov as support, we’re hovering perfectly at this level now. If we do bounce from here, this will indicate that the trend is fairly strong, and another sharp move up could be in bound.
I would now like this pair to retrace slightly more towards the 0.382 fib and ideally towards the 0.618 as it aligns perfectly with the previous high.
A second way to look at this is that we could be using the false breakout of the channel at 18th Nov as support, we’re hovering perfectly at this level now. If we do bounce from here, this will indicate that the trend is fairly strong, and another sharp move up could be in bound.