Our desired shorting area

FX:GBPUSD   British Pound / U.S. Dollar
321 3 4
The GBP/USD             is rallying, but the overall structure and overall trend of the market is still very bearish . With that in mind, looking at the 4H chart, our desired point of entry will be at a confluence between the long held descending trend-line, the 38.2% of the latest bear wave; the support and resistance+psychological factor 1.5800 level. Finally, we'd like to see RSI at around the 65 handle. If things materialize in this fashion, we're with-the-trend sellers, and we believe the pair will indeed break the recent consolidation zone.
I agree in the overall view of GBPUSD but I would like to point out this trend seems to be on its possible death-bed.

Look at this chart:

Notice how the trend has gone from the upper-range to the lower-range in various occasions (very mature trend). Every time it touches the upper-band, it is followed with a touch on the lower-band.

This last touch on the upper-band, however, was cut short from reaching the lower-band, signaling that the bulls are starting to take control of the trend in general.

Now look at this updated chart:

As you can see, the price went deep into the upper band and retraced to the mid-trend line before a sharp rebound to the upper band (notice this last daily candle is still 8hrs before closing).

This means that twice the trend is edging on the upper-band without a touch on the lower-band. When this occurs what usually follows is an overall trend-change.

I am still hopeful this will go down but, realistically, I would stay away from shorts at the current situation.
+1 Reply
SamKent TheNickD
Point well taken, thank you sir for the insightful analysis :)
I just wanted to point out this as well, i think this trend line is better suited, but yours could be used as an outer trendline.
+1 Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out