This is how GBPUSD presents a handsome short trade opportunity
Trade Idea:
We can see that GBPUSD has formed a double top and price has broken the neckline of the M formation, now price has retested the neckline so I will only be looking for short trades targeting next S/R zones as illustrated in the chart.
Previously, I took a short trade when price retraced back to the 0.618 level (also my favourite retracement level), targeting the next S/R zones, however, the next safe entry level would be a retest of the EMA14&21 in combination with favourable rejection/reversal candles.
TP & SL Levels:
TP1: 1.2076
TP2: 1.1943
SL: 1.2243
Technical Analysis:
* Price below 200EMA.
* RSI 14 below 45.
* Respecting the Light Blue Downwards Trend line
* Break and Retest of the Neckline
Fundamental Analysis:
Brexit Talk with EU not going well (Bearish GBP)
UK issuing negative yield government bonds (Bearish GBP)
We can see that GBPUSD has formed a double top and price has broken the neckline of the M formation, now price has retested the neckline so I will only be looking for short trades targeting next S/R zones as illustrated in the chart.
Previously, I took a short trade when price retraced back to the 0.618 level (also my favourite retracement level), targeting the next S/R zones, however, the next safe entry level would be a retest of the EMA14&21 in combination with favourable rejection/reversal candles.
TP & SL Levels:
TP1: 1.2076
TP2: 1.1943
SL: 1.2243
Technical Analysis:
* Price below 200EMA.
* RSI 14 below 45.
* Respecting the Light Blue Downwards Trend line
* Break and Retest of the Neckline
Fundamental Analysis:
Brexit Talk with EU not going well (Bearish GBP)
UK issuing negative yield government bonds (Bearish GBP)
Comment:
As an update, price has went the other direction of my projection and I am accepting the loss, however, I believe due to market anomalies, there is still an opportunity to short this pair. So, my trading system is telling me the reversal level is 1.23790 before going to the downside targeting my previous targets. I will post another trade idea if I see a clear short opportunity for you guys, so please do follow my profile for more honest and great content.
Trade closed: stop reached:
This trade has hit my SL due to the recent risk on environment, overall good trade setup and idea. Lesson here: Never overrisk your account on one single trade.