GBPUSD Selling Plan:
I am considering a sell position on GBPUSD based on observations on the 4-hour timeframe. Until the 28th of December, a clear sequence of higher highs (HH) and higher lows (HL) was evident. However, on that date, this sequence was disrupted, and a significant downside breach occurred, indicating a strong bearish momentum. My intention is to follow this downward trend.
It's worth noting that there is a correlated buying activity in GBP from yesterday. Despite this, I anticipate the GBPUSD price to reach a specific level, marked by the black rectangle on my chart, where I am inclined to sell. The rationale for choosing this level is that within the rectangle, previous attempts by buyers to shift from a higher low (HL) to a higher high (HH) have failed. This failure suggests a predisposition for selling, unless a new lower low (LL) is established.
The general plan for selling this pair involves closely monitoring the price action when it reaches the black rectangle. Specifically, on the 1-hour or 15-minute chart, I will be attentive to any signs of a broken sequence of higher highs (HH) and higher lows (HL). If such a breakdown is observed, indicating a potential reversal of the bullish trend, I will initiate a sell position.
I am considering a sell position on GBPUSD based on observations on the 4-hour timeframe. Until the 28th of December, a clear sequence of higher highs (HH) and higher lows (HL) was evident. However, on that date, this sequence was disrupted, and a significant downside breach occurred, indicating a strong bearish momentum. My intention is to follow this downward trend.
It's worth noting that there is a correlated buying activity in GBP from yesterday. Despite this, I anticipate the GBPUSD price to reach a specific level, marked by the black rectangle on my chart, where I am inclined to sell. The rationale for choosing this level is that within the rectangle, previous attempts by buyers to shift from a higher low (HL) to a higher high (HH) have failed. This failure suggests a predisposition for selling, unless a new lower low (LL) is established.
The general plan for selling this pair involves closely monitoring the price action when it reaches the black rectangle. Specifically, on the 1-hour or 15-minute chart, I will be attentive to any signs of a broken sequence of higher highs (HH) and higher lows (HL). If such a breakdown is observed, indicating a potential reversal of the bullish trend, I will initiate a sell position.