GBP/USD H1 Short Term Sell
After 5 bounces on the trendline, we finally have a break.
A short term downtrend is confirmed with the 50 EMA crossing below the 200 MA.
Sell Entry is suggested near 1.2190 for a strong 1:3 risk to reward trade and T.P just above the next support level.
This is a high quality setup because we have strong confluence at Entry:
- Support Trendline becomes Resistance Trendline
- Horizontal Support Zone becomes Resistance
- Potentially the 50 EMA or the 200 MA could also act as Resistance
Price action near the 1.21 mark would be observed to find new direction.
A short term downtrend is confirmed with the 50 EMA crossing below the 200 MA.
Sell Entry is suggested near 1.2190 for a strong 1:3 risk to reward trade and T.P just above the next support level.
This is a high quality setup because we have strong confluence at Entry:
- Support Trendline becomes Resistance Trendline
- Horizontal Support Zone becomes Resistance
- Potentially the 50 EMA or the 200 MA could also act as Resistance
Price action near the 1.21 mark would be observed to find new direction.
Order cancelled:
As I probably thought, It did not retrace near the 1.2190.
Will look for other opportunities.
Will look for other opportunities.
"I thought it would be probable that retracement would go up to the 1.2190 mark
but it did not."
Instead it made a small bearish ascending triangle on the 5M chart before breaking down for the impulse.