Possible Short Opportunity for GBPUSD

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.

Commento:

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 chiuso: obiettivo raggiunto