SimpleCryptoLife

GBPUSD: Shorting top of triangle

Short
FX:GBPUSD   British Pound / U.S. Dollar
Some financial news articles are saying that the Pound is breaking up from a symmetrical triangle.

I say it's reaching the top of an ascending triangle .

I don't know if it's a slow news day or if they're looking for suckers to buy a false rally, but this looks like a much more likely place to short than long to me.

+ Overbought on 1D and 12H
+ About to run into strong horizontal resistance
+ Running into 12H 200 EMA / SMA ribbon
+ About to run into 1D 200 EMA / SMA ribbon

I'm not suggesting you trade this, but I will.
To minimise the risk of an actual bullish breakout for some reason I'll wait for a rejection from this confluence of resistance. So that I can still get a reasonable entry, my trigger will be a break of the 1H ATR with a multiple of 3. Tight stop on a local high or ATR. I'll probably take profit, if I don't get stopped out, at the bottom of the triangle and reload at the top again or on a break downward.

Indicators used: Built-in 200EMA, 200SMA, ATR + Trailing Stops, Price Action Trend Overlay | Simple

Disclaimer: This is not advice. Trade safe!

Comments

Update: I pre-emptively shorted the touch of the red box. And added on the break of the ATR as described in the setup.
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Hello @SimpleCryptoLife
This is detailed and very interesting analysis.
I think, if price drops down as projected on Hourly chart, then we could have a great opportunity to ride the trend up.
Embedded is my earlier analysis and projection.
To your trading success.
#MarketHumblesMe!

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SimpleCryptoLife UnknownUnicorn3713207
@UnknownUnicorn3713207, thanks for your comment and sharing your analysis. Long-term I'm bearish on GBPUSD, because of all the Eurodollar swap lines. But the dollar might go down before it goes up. That's a bold prediction you've got there.
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UnknownUnicorn3713207 SimpleCryptoLife
@SimpleCryptoLife, This is appreciated. Thanks!
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UnknownUnicorn3713207 UnknownUnicorn3713207
@SimpleCryptoLife still holding on your "bold projection"?. Wanna follow my humble fibonacci-based projections I did on 30th May? Maybe its time.
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SimpleCryptoLife UnknownUnicorn3713207
@UnknownUnicorn3713207, Thanks for asking. I got stopped just above resistance for a small loss. I'm not going to trade your analysis, because I don't understand harmonics. I gotta trade what I see. Probly focus more on crypto for a bit, as that market's getting interesting now.
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UnknownUnicorn3713207 SimpleCryptoLife
@SimpleCryptoLife, Great!
To your trading success.
#MarketHumblesMe
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