On the H4, with prices moving below the ichimoku indicator and the stochastic indicator moving in a downtrend channel, we have a bearish bias that price will drop from our 1st resistance at 127.699 where the horizontal overlap resistance and 23.6% fibonacci retracement are to our 1st support at 127.028 in line with the horizontal overlap support. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 128.070 where the horizontal overlap resistance, 38.2% fibonacci retracement and 38.2% Fibonacci retracement are.

Trading Recommendation

Entry: 127.699

Reason for Entry:

Horizontal overlap resistance and 23.6% fibonacci retracement

Take Profit:127.028

Reason for Take Profit:Horizontal overlap support

Stop Loss: 128.070

Reason for Stop Loss:

Horizontal overlap resistance, 38.2% fibonacci retracement and 38.2% Fibonacci retracement