Price has been in a downtrend, consistently forming Lower Lows (LLs) and Lower Highs (LHs). However, a bullish divergence has developed on the 1H RSI, indicating a potential loss of bearish momentum. This is further supported by the formation of a Falling Wedge, a bullish reversal pattern.
The previous LH level has already been broken, providing confirmation of a potential trend reversal and bullish market-structure shift. Additionally, price has retested the previously identified Fair Value Gap (FVG) level, adding further confluence to the setup.
Trade Plan
An instant buy entry at the current market price is considered, as the bullish structure has not yet established a mature HL.
Entry: Current Market Price
Stop Loss: 0.160 — below the earlier LL
Take Profit: 0.197 — previous resistance zone
Target Rationale: The target is positioned around the earlier resistance area, where price may potentially face selling pressure.
Since the new HL has not yet matured, the earlier LL at 0.160 is being used as the structural invalidation level. Strict risk management should be maintained until the bullish structure develops further.
