GbpUsd Bearish Setup Trade Plan

Summary
Even though the pound has lost so much ground against the dollar since Brexit, it had its fair chance of strength over the greenback during this month, due positive economic data that drove it up and at most losses in the greenback. I, personally, am a bear on the pound because I simply don’t have any fundamental reason to buy it. With the NFP data coming this friday, I am bit conservative and will at most trade accordingly should this plan be defied.

Bias: Bear
Green horizontal rectangles drawn in show levels of support while, while the pink ones show levels of resistance.

GbpUsd Daily Chart

At the beginning of the month (November) we saw price open between MM2 and MPP @ 1.22340 and going on to break an immediate resistance level of 1.23083. Price was held by a key resistance level @ 1.26500 (psych) and went on to retest at the role reversal. I'm expecting price to trade within the descending triangle and for it to faill an upside breakout of the trendline. This will complete a 1,2,3 formation and confirm the high probability of a downside breakout through a support level of 1.23268.

GbpUsd H4 Chart

Price is currently at WM3 after failing to break through a resistance level of 1.25300. Stochastic divergence suggests a double top. A downside break through the symmetrical is eminent as it is now near the apex of the triangle. a retest at the neckline (role reversal) will signal a further bearish move.

GbpUsd H1 Chart

Price has been contained in between an upward channel. The direction of this trend is against the prevailing trend and has now hit the fib target of 61.8. this was short term and it was simply a continuation pattern forming. a break on the downside of the channel will further signal a bearish move changing the direction of the trend.