Daily Time Frame
Look at that daily trend line made in GBPUSD. It was a very powerful resistance on the daily time frame that there were so many wicks hitting it from the past few days but none of them were able to close above. It made the price action move lower again and could it possibly go even further to hit the support line around 1.5115.
1HR Time Frame
Looking at a lower time frame, we can see that the pair is doing a staircase of possible resistances from the lower high price action. And with this situation, I believe that it could go back down and continue its downward trend.
1HR Time Frame
With the top down analysis on GBPUSD, I will short the market at 1.53118 hoping it to go lower again. I set my stop loss at 1.53512 and take profit to 1.52312 having a 1:2 risk to reward ratio. This is a 40 pip stop loss and a 80 pip profit target.
This trade setup is for short term time frame. If you can have a bigger risk than me, you can put your stop loss above the trend line and have your profit target just above the support level indicated earlier on the Daily Time Frame.
I am currently -40 pips. Hopefully this trade will be more fortunate than the previous one.
Good luck in trading guys!
GBPUSD Sell
Entry: 1.53118
SL: 1.53512
TP: 1.52312
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