Price has been in an uptrend for for sometime on this pair, as the Pound has been quite weak. As you can see, it was respecting the ascending Trendline, sometimes to the PIP. The Red arrows are showing Price Action, unable to break 4H Resistance for a few attempts. Once broken, I want to see a re-test of that level which clearly happens. The manner in which it re-tested set off an alarm bell. I like to see impulse moves bigger than corrective moves. Here, its the other way around. The 2nd alarm bell, was price failed to make a Higher High. Something has changed in the market. Price then consolidated for a while which which was to be expected, along with rejection wicks to the upside. Sellers are now entering the market. Price eventually breaks the long term ascending Trendline. Once the re-test happens at an area of value, (Support becoming Resistance) Im ready to sell. For added confluence, price also rejected the 20 EMA. If you look left structure leaves clues, that was also 4H Resistance awhile back. Then the sell-off finally came.
You can't really have good direction right now, because of Brexit, this price could hop up merciless or dive down like a bomb, if we get the Brexit answers and.progress there, that defines a trend up or down for longer term, right now overall the markets are acting wierd and people are afraid something is coming again.
DiamondFXtrader
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@larrythe, The clue is in the title of the post pal. This post is for newcomers who want to learn PA & Structure. Its irrelevant whether the pound will sink or rally.