( 2 pos in progress) week21 GBPAUD mean reversion hypothesis counter trending the counter trend

After an earlier part of the week in which profits were slashed, I hv returned to this pair.

Currently looking at several criteria which might give GBPAUD a short move down.

Will believe that this is a ” counter-trend of the counter-trend” , so looking to TP fast or shift to break even.

Reasons for taking this trade:

1)overall downtrend, +ve swap trade, willing to hold till fib6

Trend is down but I acknowledge this may not be the move that brings it al down yet

2) w1 res , d1 fib5 , recent d1 high

Strong confluences of resistance.

3) price overextended after rally for 3 days

Playing off an exhaustion of this counter trend bulls. Also banking on mean reversion to bring price back to lower levels for bulls who are still looking to long.

4)TP @ ema touch + d1 line chart support

My TP level will be based on d1 line chart. To complete a D1 1234, price still needs to overcome this level. I will assume at the moment it is not going to break and hence TP at that area. Also touching the base of the EMAs.

week21 GBPAUD mean reversion trade 230514

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