GBP/USD (BEARISH FLAG)? 4HR
eyeing up a potential bearish trade setup today.
so price is in a strong and clear downtrend as illustrated by the blue channel lines, and early analysis suggests that a bearish flag pattern may be about to validate in line with the current trend. I am however waiting until the release of the inflation rate data tomorrow at 7am (gmt) to give me the trigger for a trade entry.
if this scenario goes ahead as planned i would look to enter just below the breakout of the lower flag channel around 1.24200 , stop loss just above the previous swing high at 1.25000 and take profit around 1.23100 for a 1.5 risk reward ratio.
as far as i can tell the only major counter analysis that i could clearly see was the green dotted trend line more easily seen on the daily time frame showing a potential bounce upward in the near future. however this is a fairly basic level of price action analysis only so be sure to double check before entering a trade.
so price is in a strong and clear downtrend as illustrated by the blue channel lines, and early analysis suggests that a bearish flag pattern may be about to validate in line with the current trend. I am however waiting until the release of the inflation rate data tomorrow at 7am (gmt) to give me the trigger for a trade entry.
if this scenario goes ahead as planned i would look to enter just below the breakout of the lower flag channel around 1.24200 , stop loss just above the previous swing high at 1.25000 and take profit around 1.23100 for a 1.5 risk reward ratio.
as far as i can tell the only major counter analysis that i could clearly see was the green dotted trend line more easily seen on the daily time frame showing a potential bounce upward in the near future. however this is a fairly basic level of price action analysis only so be sure to double check before entering a trade.
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