On this GBPUSD weekly chart we can see that last two weekly candles combines a bearish engulfing pattern, especially at such a crucial position with horizontal resistance, trendline resistance, and Fib 38.2% retracement. As last week's candle completed quite weak, it is highly likely that we could find good short entries in coming days.
Comment:
On daily chart, it is obvious that price had a fake upwards breakout on the horizontal resistance zone, which indicated a very weak markt. However, to be cautious, I won't look for selling right now as there may be an up trend line just below the current price. If price could have a consolidation before keep dropping, it will be better. First target will be the next upwards trenline.
Comment:
On 4 hour chart, though price goes quite weak right now, the range for short is narrow as the existance of a possible horizontal support zone and an upwards trendline. Personally I would like to wait for a weak 4 hour candle confirming the breakout of trendline before starting looking for short entries.
Comment:
Same chart with yesterday's 4 hour one. You guys should see that price has been strongly supported in the yellow zone, which is around the support zone and trendline. My trading plan is unchanged, I'm still waiting for a bearish candle to break the trendline and the support zone, then I will begin to look for short entries.