GBP/USD Short Signal: High-Probability Setup on 4H Chart
A well-defined bearish wedge flag on the 4-hour chart presents a strong short opportunity. Within this setup, a double top formation on a smaller time frame adds further bearish confluence. The price has reached the 61.8% Fibonacci retracement level, while the weekly chart reveals the 50-period moving average acting as a significant resistance level, touched from below.
Momentum is visibly weakening, as indicated by the RSI. The stop loss is set above the wedge, aligned with the 78.6% Fibonacci retracement level, and the reward target is at the bottom of the wedge. This trade offers an attractive Risk-to-Reward Ratio of 2.45, making it a compelling short signal.
Regardless of whether the price transitions into a downtrend or consolidates into a trading range, this setup provides a solid opportunity for a short position.
Momentum is visibly weakening, as indicated by the RSI. The stop loss is set above the wedge, aligned with the 78.6% Fibonacci retracement level, and the reward target is at the bottom of the wedge. This trade offers an attractive Risk-to-Reward Ratio of 2.45, making it a compelling short signal.
Regardless of whether the price transitions into a downtrend or consolidates into a trading range, this setup provides a solid opportunity for a short position.
Trade active
There is an overshoot of the Wedge which is an early sell short signal.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.