Similar to my AUDUSD idea, I have technical reasons to believe that GBPUSD is about to make a swift move downward. Short term bear trend here has been obscured by absorbent buying on each attempt to flush out longs. 1:6 R:R
On Weekly timeframe you will see a just recently posted bearish engulfing candle.
On Monthly timeframe you will see a just recently posted hanging man candle.
USD continues to push up with the rest of the market and until trend suggests otherwise, I expect that to continue.
Thoughts?
Trade your own plan, this is just an idea.
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Below is a view of the Weekly bearish engulfing.
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Note the relentless puncture of the MA in the previously posted Weekly image.
Below is a view of the Monthly hanging man.
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Off to a rough start on this trade idea, let's take a look at a larger timeframe though. Below is the 4-Hr chart, where we can see that even though it broke up and out from the 1-Hr range, there is still some approaching larger level resistance just above. Another short opportunity with the same 1:6 R:R
Will be looking for rejection at the trend line and then will attempt a new short from there.