Possible Short Opportunity for GBPUSD
Updated
Today the DXY has broken a minor resistance zone, indicating the dollar will go up. With its inverse relationship to GBPUSD taken into consideration with the following confirmations I see on the chart, you will understand why I took a short position. On the 4H I notice momentum has taken us down to the pre-established and confirmed 4H support level of .30302 as well as the bottom of a major demand zone, where we see consolidation. This alone is not enough information to take a sell. On the 4H we also see a "Three Black Crows" candlestick pattern. This means there is a high possibility that GBPUSD's slight uptrend into a bear market. When we go down to the 15M chart we can see a clear indication of a continued bear market with lower highs and lower lows. We have a wick to fill on the 1H for an additional confirmation, which is at a minor zone. Now, this could initiate a retest of resistance of .30302, however price action should drive us into profit soon after.
Note
TP1 and TP2 hit overnight, after the expected retest of the "fresh zone" at .2975. Price quickly rejected and reversed however profits were snagged in the process.Trade closed: target reached
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