GBPUSD

3 jul 2020

Since my last published idea on the cable, I still maintain a bearish bias on the GBPUSD pair seeing that price failed to make a higher-high even after hitting my stop-loss on the short position. Well I've had to erase my previous drawings and had my lines drawn again and I believe I saw the market in a different way. On the daily time frame I took note of the most recent high(DR=1.2813) and low(DS=1.2260), both were marked out as my support DS, and resistance DR using horizontal lines. I noticed also that the market had formed a series of lower highs and lower lows showing sign of a downtrend. I noticed also a double top formation after price failed to break above an area of confluence, showing signs of a bearish reversal. Moving on to smaller time frame, on the 4h chart I noticed what seems to be the formation of bullish flag since the precious run up toward the trend support showing that price might continue its move upward. Although believe the market is going to present an opportunity to go short, it would be a bad idea to ignore the signs of a move upward. To avoid taking a trade out of inexperience and regretting my actions later, I'll do nothing until the market presents a clear opportunity.
As for the trade, I'm looking to buy or sell this pair depending on what opportunity the market presents and I'll be maintaining a risk of 50 pips on a nano lot size(0.01);
Buy Entry: 1.2560, SL: 1.2510, TP: DR(1.2813).
Sell Entry: 1.2404, SL: 1.2454 TP: DS(1.2260) or DS 2(1.2074).