Trading with Fibonacci Levels
In this case that interpretation would have worked quite well and I think it is a valid interpretation after the bullish engulfing occurs especially given the pair is in an uptrend on this Daily chart. That being said, there are no guarantees. The highest probability Fib retracement trades are the ones that reach the 50% - 61.8% level.
The key here will be stop placement. Either below the 50% level or below the lowest penetration of the 38.2% level would be a prudent level for a stop.
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