We had covered our previous short for great profits last Friday, and we're now looking to rejoin this downtrend.
It's safe to short any rally, or to short if daily prices go to 1.24795 or higher.
To make sure we're in, we can divide our entry in 2 or 3 parts, and just take a smaller entry at market open, splitting risk equally between these positions*. It appears like we can expect the Pound to selloff further, so, any sign of strength is a short for us, given the pending 'time at mode' price target on chart.
I added 4 predictions, based on the key levels and speed lines, as well as the price action. If we gap down, we could expect the red path, if no gap, the black one. If we gap up, the green path wouldn't suprise me. I'd have to see what the positioning looks like for retail traders after this shock. I'd guess all longs have been stopped out by now. Before this, we had like 85% longs according to FXCM's SSI tool. A sideways path would frustrate everyone, until they'd start looking for longs again, and then, we get the big drop again.
This is just a guess, but, you can estimate the reaction when we approach the speed lines and support and resistance levels on chart. If you want to learn more about these methods, contact me privately.
Good luck,
Ivan.
PS: I'd reccomend using the weekly stop for all entries.