$GBPUSD - Sell Bias Setup - Sell at Breaker Clear the Low

The picture is pretty self descriptive. The next daily bias seems to be heading toward the direction of selling. There are many daily lows stacked up ready to be broken as well as an equal low setup just prior to the previous daily lows. I think during the Asian session we'll see Cable range but create equal highs and lows that it will want to break to creating a breaker that will propel it to the current breaker. I'm seeing the same Bias in EURUSD as it seems to be struggling to create a higher high.

The current swing high in GU was formed from a previous breaker but the low has yet to be cleared. To be honest it could just keep going lower without pulling back for the set-up. But if it does pull back to around 1.30995 I will be looking to sell with about a 40-50 pip stop loss, but it should gain over 100 pips to break the low so well worth the risk to reward. But I like to peel off profits in case it does not get to my target so I have planned 3 TP zones and depending on price action will depend on how much I move my stop loss and where. Will be giving updates as I continue to watch this setup unfold.

Edit: The S/L Depicted in the graph may be too tight. I may loosen it back to 1.31500 depending how the market is reacting. I don't want to go above the prior swing high of 1.31757 because if it breaks that, it's more than likely going higher.

There could also be a lower sell at 1.30787 in which it may not get higher as that is another bearish breaker. Just another thing to watch for in this setup.

Trade active:

I entered a little early but I entered at 1.30930. No Analysis has changed. Still looking to break toward the lows.

Comment:

Taking a close look at the price action on the 5 min chart at the entry... it formed a bearish order block already returned to the block and is continuing to sell. I'm holding my ground and I also added another position. Although I should've held my original entry at 1.30995

Comment:

It needs to break these equal lows at 1.30695

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It could also reach up to 1.31153 where there is a bearish order block. If it get's halfway through that 5 min candle that's when I would think about pulling the plug. But all is looking good. It just building up slowly to entice buyers.

Comment:

"Retail Support"

Comment:

There's a lot of price action to watch just in the 5 Min chart. Anyone who thinks a 5 min chart is noise doesn't know how to read price action. Not trying to sound arrogant, but you should know what to be watching for. I am watching the bullish order block that is being perceived as "Support" right now. If it breaks that block there's more room for it to break a lot lower.

Comment:

Now it just created equal Highs giving the perception of resistance. Something tells me we'll see a bounce back up and breaking those equal highs to the bearish order block and then we'll see a sell. I would watch the 1.31153 level for a sell.

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It tapped a bearish order block and I think it's safe to say a sell is on the way now. Those equal highs will be used later for price action to break but I don't think it will be today.

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Looks like I could be wrong about not breaking those equal highs. Back to watching the 1.31153 level again.

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Tapped almost exactly where I thought it would before it started selling again. Watching for it to reach the 1.30617 level.

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There we go... I was almost sweating it, but the bearish action finally came in.

Comment:

My apologies as I wasn't able to get this information out as I was in a meeting, 11a.m. - 2 p.m. central time (It's now 2:17 and I am finally able to get back on my computer), though I was still watching this trade on MT4 during my meeting. I jumped ship and closed all positions at 1.30820 which happened around the start of my meeting 11:30-ish. Whenever it wouldn't sell past the breaker (swing high on the left of the chart, marked with big red dotted line) and It came back up to the bearish order block bounced off and started buying, that's when I knew the trade was going bad. I closed all positions and never looked back. I was also scalping many sells throughout this little roller coaster so even though the trade didn't go as planned. I still came out positive and that's what matters. I'm thankful that I have the ability to read price action the way that I do. I hope you all also came out on top or had some preventative measures in place. Thanks for liking my ideas. They help me grow and be a better trader.

Trade closed manually

Comment:

My bias was incorrect, it should be a buy side bias, although I missed the big moves for the buys, there's still room to take out another high in which I will be looking for a setup to buy when it does take out the next daily highs.