Pound has begun this week on a more bearish tone, price has failed at the 1.26500 level, and has broken through the 1.2500 level, and currently hovering around there. It appears as though this level of price is acting as significant resistance, as it could not be broken post flash crash either. Thus I will look for selling opportunities throughout the day.

GBP/USD Daily chart

MR1 which is the bullish monthly target from MS1 has been hit, thus profit taking is expected, along with possible pound bear entries. We are at currently the 1.2500 handle, and will look for entries closer to the 1.25500 level. resistance is shown in red, support in green.

GBP/USD H4 chart

Price has opened the week at WM3, this is the bear entry zone, with a target of WM1. i will look for profit taking around the WS1 area, shown by black lines. furthermore, we have seen a series of lower lows and highs on the H4 time frame, indicating a possible shift to bearish sentiment. resistance is shown in red, support in green.

GBP/USD H1 chart

Price has been trading beneath the black trend line shown on the chart. my ideal entry would be off this trend line, between dpp and dm3, however I may look to enter at dpp, dm3 or the 61.8 downside fib retracement level. these 3 levels are marked out by the red, and are all areas of role reversal support become resistance.

3 thoughts on “GBP/USD Daily short”

  1. Charles Bidner says:

    Great stuff Dominic. Alas, I missed it. I was watching earlier and was distracted for an hour and missed it. I like your analysis will look for more of your posts. If you entered as planned you will be smiling as I write. Good for you.

    1. Dominic Davimes says:

      Hey charles, thank you very much 🙂 glad you like it.
      I placed trade at dpp, and have taken profit just above dm2, i have come to learn that when we are at dm2 for london open, and you are in profit, take profit and run. often it spikes around this point if this is where we open.

      I am also cautious with buying the dollar currently, due to trump related uncertainty, so i am happy with a 35 pip scalp.

      Happy trading charles 🙂

  2. Ken Moulton says:

    Hi nice plan. Could you include dates and specific prices also. Thanks

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