For the past 3 months since September 16th Pound has been trading inside of this Bearish Trend Channel.Has formed a series of Tops and Bottoms but ultimately failed to breakout of the channel making this bearish trend stronger over time. It has recently managed to find some support at 1.4860 area and is currently trading around the 1.4935 mark.So here are some of my ideas on Shorting Pound/Dollar.If we manage to close below the 1.4888 or 1.4860 mark.I would recommend entering a short straight away with stops just above or at 1.49 area with a target of 1.4788-40 and later 1.4698. We can also try shorting it after we a completion of 0.5% retracement on the pair after price fails to break higher.Only then our first target would become 1.4860 & Lastly we may try shorting after price due to some reason rallies and manages to retrace 0.764% and fails to break above the T.L resistance from November 3rd and 18th.This view of mine will be invalid once Price manages to break out of the Trend Channel with a proper close and prices rally higher.Currently Prices are well below the 100 day and 50 day moving averages.Also we have a crossover on the moving averages which gives a classic indication of the short term bearish trend in play on H4 time frame.
Taking a look at the indicators MACD continues to move into bearish territory and Stochastic's are also well below the 20 mark. So Pound/Dollar is giving off a very bearish outlook
Taking a look at the indicators MACD continues to move into bearish territory and Stochastic's are also well below the 20 mark. So Pound/Dollar is giving off a very bearish outlook
