Above is the GBPUSD daily chart.
Above is the GBPUSD weekly chart.
GBPUSD – Lets look at GBPUSD on the daily chart. This is NOT a trade call. But an advise to be more alert on this pair for a few reasons that I will state below.
It is near resistance zone at around the 133.6 zone. We need to wait for a bearish confirmation on this zone before we can go short on this pair.
What can we look out for? What type of price action before we go short?
Look out bearish pin tails, bearish engulfing candles, bearish candles with long bodies as a reason for us to enter short on the GBPUSD.
Why enter short?
We are still in a major downtrend that was initiated by the Brexit turmoil.
Should we look at higher time frames? Yes we should.
I have attached a weekly chart. A look back in the past have shown that price tend to reverse when it is near the 15 ema. We are currently also approaching that area on the weekly chart.
Trade idea: Look to go short. Now? Not yet. Observe first and look for the sell crowd to come in before shorting. Go to daily chart and look for a bearish confirmation.
Will make the call if I see anything convincing.
Pro Trader & Trading Coach
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