#GBPUSD: Divergence and Fibos for a Short

2 Mar 2015

After a 6 month drop, price goes out of the downtrend tunnel to create a short term bullish trend.
Price arrives on a confluence level : divergence, round number and fibonacci 0,236 acting as bull blocker.
Price is now breaking the lower level of bullish short term tunnel, this is our SHORT opportunity.

I'm expecting a drop to the previous low.

Cross-pairs Strenght Analyze : GBP meets resistance against AUD, CAD.

Please share ideas and comments.
Cheers

ENTRY: 1.53463 (to be confirmed, if a retest of not of downtrend tunnel)
Stop Loss : 1.55602
TP1: 1.49825
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Trading rules are :
1. Trades are taken in 1, 2 or 3 units depending the situation.
2. If 90 percent of first target is reached I move stop loss to break-even.
3. If 90 percent of first target is reached without triggering entry I cancel the trade.
4. About targets : this is not an arbitrary approach, because every situation evolves different, targets will be adjusted according how price behave on key levels.
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My 5 tips to keep in mind that will save you from losing :
- Make sure to have enough Momentum on your side
- Use powerful confluences (BRN, major S/R, Div, Trend-lines, Fibos)
- Have enough space to reach 2 Ratio:Reward at least, avoid tricky noise situations
- Good price action (pinbar, inside bar etc..) at bottom/top for a good price
- Enjoy your wins and learn from your losses

Wish you great success !