This chart shows a sell setup for GBP/USD on the 4-hour timeframe without using indicators. Here’s the breakdown:
Key Observations:
Ascending Channel:
The price is moving within an upward sloping parallel channel (marked with yellow trendlines).
The price has recently touched the upper boundary of the channel and started to decline.
Bearish Rejection at Resistance:
The recent candles near the top of the channel show rejections with wicks, indicating selling pressure.
A lower high formation suggests weakening bullish momentum.
Sell Entry Setup:
First Confirmation: Price is already pulling back from the upper trendline.
Second Confirmation: A break below the middle of the channel (potential support) would strengthen the bearish move.
Projected Targets:
First target: The lower trendline of the channel (~1.2900 area).
Second target: The demand zone (green area) around 1.2800, which aligns with the Fibonacci 50% level.
Bearish Scenario:
If the price breaks below the lower trendline, the selling momentum could accelerate toward the 1.2800 demand zone.
Trade Plan for a Sell Position:
Entry: After a confirmed break below the mid-channel (~1.2920).
Stop Loss: Above the recent high (~1.3000).
Take Profit: First at 1.2900 (trendline), then 1.2800 (demand zone)
Key Observations:
Ascending Channel:
The price is moving within an upward sloping parallel channel (marked with yellow trendlines).
The price has recently touched the upper boundary of the channel and started to decline.
Bearish Rejection at Resistance:
The recent candles near the top of the channel show rejections with wicks, indicating selling pressure.
A lower high formation suggests weakening bullish momentum.
Sell Entry Setup:
First Confirmation: Price is already pulling back from the upper trendline.
Second Confirmation: A break below the middle of the channel (potential support) would strengthen the bearish move.
Projected Targets:
First target: The lower trendline of the channel (~1.2900 area).
Second target: The demand zone (green area) around 1.2800, which aligns with the Fibonacci 50% level.
Bearish Scenario:
If the price breaks below the lower trendline, the selling momentum could accelerate toward the 1.2800 demand zone.
Trade Plan for a Sell Position:
Entry: After a confirmed break below the mid-channel (~1.2920).
Stop Loss: Above the recent high (~1.3000).
Take Profit: First at 1.2900 (trendline), then 1.2800 (demand zone)
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Disclaimer
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For Training visit.
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Related publications
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.