GBPUSD on the higher time frames (4H and above) is downtrending and is currently trading within a range. We have added a image and a zoomed out image of the 4H below this description.
Price had recently broken out of the strong 1.26500 but rejected higher prices and broke back into the range.
Price was in an uptrend towards the 1.26500 , but has now broken clean below, and is possibly forming a downtrend.
Price is now retesting the uptrend line, which is in line with a S/R zone(blue box) and also the downtrend line, which would add more confluence to a short trade if we see a strong rejection of this area.
We would like to see a strong rejection of the uptrend line and S/R zone with a or on the 1H or 4H charts to confirm a bias.
Our 3+ reasons to enter a short position;
-Break of uptrend line
-Retest and rejection of uptrend line
-Retest and rejection of S/R zone
-Rejection of downtrend line
-Strong rejection candles on 1H/4H
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