Price is holding above the 1st support at 1.25924 which is in line with the most recent horizontal overlap support and 38.2% Fibonacci retracement and may continue with bullish movements towards 1st resistance at 1.26429 in line with 38.2% Fibonacci Retracement and is a graphical resistance. Our bullish bias is further supported by the stochastic indicator where price is testing support where price bounced in the past. Otherwise, price may break structure at 1st support and head for 2nd support at 1.27321 in line with 127.2% Fibonacci retracement and 78.6% Fibonacci retracement.
Reason for Entry:
Horizontal overlap Support and 38.2% Fibonacci retracement
Take Profit: 1.26429
Reason for Take Profit:
38.2% Fibonacci Retracement and graphical resistance
Reason for Stop Loss:
127.2% Fibonacci Retracement, 78.6% Fibonacci extension and graphical supportThe material has been provided by InstaForex Company - www.instaforex.com