- There are two possible setups which I can see could potentially be very good entry points to enter this pair.
-The first set up will be to enter on the the reversal of the 23.6% fib level which in confluence with the .
-If the first setup is unsuccessful then the second set up should be aimed at looking to enter the reversal at the 50.0% fib level which is also in another confluence with my other .
- Another confluence is the 50EMA which is above price which indicates that GBPUSD is currently in a downtrend and we should only be looking for short positions.
- Looking at the report, shows that an average of 57% of large short positions of non commercial institutions been placed for the GBP whilst on the other hand 67% of non commercial institutions have added long positions for the US Dollar . This indicates that we could see GBP getting weaker whereas US Dollar is getting stronger and this is another confluence to go short on GBPUSD .
-We should be looking for a strong candle as confirmation to enter this pair depending on price reacts to the two levels I have mentioned.
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Have a good trading week!