4mm4
Short

HIGH PROBABILITY SET-UP ---- GBPUSD

FX:GBPUSD   British Pound/U.S. Dollar
353 2 1
Potential downside as people look to take profits and lock in gains. We are right under resistance of April highs (1.6300) and a fib level that lines up perfectly with that April high. We have also had a sharp move up that has brought us to the top of the upward channel. The stochastics are overbought and the RSI is looking to roll over and come back down. The 200 EMA is well below us.

First, look for a move back to the lower part of the channel. If we hit that, we may get a small bounce back up, or we could just drop right through. Either way, look for a longer term move below the lower end of the channel and back to either the 200 EMA or the underlying trend line (hashed turquoise line) or the S/R level (purple line) at around 1.574

I would put a stop at about 1.634 just incase we do get a move up and test the upper resistance. Sometimes when this happens, we get a quick spike up and then fall back. So, for this reason, I would put the stop just a little bit above 1.6300. Primary target is the lower channel line. Secondary target is around 1.5900. If we continue to fall, look for support at the 200 EMA, the purple S/R line, and the underlying trend line.
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