The second short position will be a medium term trade. This is an area of huge resistance and is the point of exhaustion for the forming. It is also the location of the 1.618 from two significant swings. It is also the location of the 0.618 from the significant swing mentioned earlier. It may even suggest a top to this correction and will allow a play to our target.
Both trades offer excellent R:R and high probability to work due to the position of our entries. Fundamentally speaking, in the near term, USD is fundamentally weak and GBP is gaining strength. I am short in the first trade as I am fading the rally as DXY is set to rebound and conditions are overbought. However in the medium term, I believe USD will become stronger and GBP weaker thus why I believe in the decline in the second trade.
As always good luck and trade safely.