LOOKING TO GO SHORT ON GBP/USD
GBP/USD 1H - As you can see from the illustrations above I am looking to go short on this market. You will notice we have been delivered with multiple pieces of confluence to suggest the potential for this trend to reverse.
This market has been putting in clear Bullishness up to now, setting Higher Highs and Lows, we are now seeing price break the lows and begin to set Lower Highs, this is a clear break in structure, this is our first piece of confluence to suggest we are not longer following Bullishness.
On top of this we have seen impulses lesson in size and price looks to be distributing, this is another piece of confluence to suggest price may be looking to trade us lower and reverse.
So with price breaking structure and the market looking as though its distributing its important to find an entry point and an end target hence why I have highlighted out a fractal Supply zone to sell from and a higher TF Demand zone to close my position.
To conclude my analysis you will notice price looks to also be putting in a clear Head & Shoulders pattern, this pattern is often put in at the end of a bullish market and the start of a bearish one.
This market has been putting in clear Bullishness up to now, setting Higher Highs and Lows, we are now seeing price break the lows and begin to set Lower Highs, this is a clear break in structure, this is our first piece of confluence to suggest we are not longer following Bullishness.
On top of this we have seen impulses lesson in size and price looks to be distributing, this is another piece of confluence to suggest price may be looking to trade us lower and reverse.
So with price breaking structure and the market looking as though its distributing its important to find an entry point and an end target hence why I have highlighted out a fractal Supply zone to sell from and a higher TF Demand zone to close my position.
To conclude my analysis you will notice price looks to also be putting in a clear Head & Shoulders pattern, this pattern is often put in at the end of a bullish market and the start of a bearish one.