GBPUSD has been consolidating in a wedge formation, It is coming to the end of the formation so we expect a break out. I think this will be on the bearish side.
I expect it will break out to around the 200MA around 1.35800, then retest the lower side of the trendline before heading down again to support which I make around 1.35320. When this happens I will use a trailing SL and follow the action down.
Initial position:
Entry: 1.36828 TP1: 1.35800 SL: 1.37800
After lower high is formed around the lower trend line:
TP: 1.35320 SL: 1.37011
Comment
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Note when the lower high is formed around the lower trend line this is bang on the 50% Fib
Trade active
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This has broken the trend line and has re-tested. The next day or so will be pivotal. if it returns to the channel then this was a false break and it will go long to the upper trend line. However If, as I think will happen, we are now seeing the re-test then this will drop considerably.