GBPUSD swing short idea

DXY is currently printing a double bottom. If that structure holds, this GBPUSD short trade is valid.

In case DXY pushes further down to the critical 99.6 are, GBPUSD should fill up at least partly the monthly FVG above.

Reasons for the trade:
Ran two highs from December and January, W candle printed doji + SFP, DXY double bottom pattern forming.

Entry: 1.2374
SL: 1.2547
TP1: 1.20
TP2: 1.18
TP3: 1.157

4.6R trade, if all goes according to plan will end up being about 3R trade with the partial closes. But as always - if market conditions shift, don't be afraid to lock in more gains earlier.

Stop loss is right above this current high - if it gets run, close the trade, accept the -1R and wait for DXY to bottom. Then we'll re-evaluate and see if GBPUSD is the best pair to short (we want relative weakness compared to other majors - EUR, AUD, CAD).

Safer trade: Wait for MSB on Daily, then look to enter on a pullback.

Trade closed: stop reached:

Stop hit, watching for a reaction in the FVG

Comment:

GBP entered the FVG. watching for reaction on smaller timeframes. If we keep climbing, next point of interest is FVG midpoint around 1.2843 area.

Comment:

DXY finally pushed higher and broke market structure.

GBP/USD lows around 1.235 juicy

But no trades for me on GBP. EUR/USD seems to be the weaker pair with more potential downside.