On the H4, with the existing bearish sentiment where price is moving below the ichimoku and in a downwards trend within the channel, we may expect to see price head for 1st support at 1.23114 which is a horizontal swing low support in line with the 61.8% Fibonacci extension and 127.2% Fibonacci projection and possibly even head to 2nd support at 1.22876 in line with the 100% and 161.8% Fibonacci extension level and 78.6%, 100% and 161.8% Fibonacci projection level. Alternatively, price may break the channel and head for 1st resistance at 1.23762 in line with the 61.8% Fibonacci extension and may even head to 2nd resistance at 1.24153.

Trading Recommendation

Entry:1.23762

Reason for Entry:

61.8% Fibonacci extension and horizontal swing high resistance

Take Profit: 1.23114

Reason for Take Profit:

Horizontal swing low support in line with the 61.8% Fibonacci extension and 127.2% Fibonacci projection

Stop Loss:1.16664

Reason for Stop Loss:

Horizontal swing high resistance