A more complex short perhaps? GBPUSD in question now.
Greetings traders. Here I present a quick idea on GBPUSD. Firstly, I am currently in this short as indicated on the chart. The price has reached the rising trendline that offers strong resistance. This is also the location of the 0.5 fib from a swing high to low that is very significant. The RSI at this point also shows room to move downwards. The target will be the area of the lower trendline and the 0.764 fib from the most recent swing from high to low.
The second short position will be a medium term trade. This is an area of huge resistance and is the point of exhaustion for the rising wedge forming. It is also the location of the 1.618 from two significant swings. It is also the location of the 0.618 from the significant swing mentioned earlier. It may even suggest a top to this correction and will allow a play to our target.
Both trades offer excellent R:R and high probability to work due to the position of our entries. Fundamentally speaking, in the near term, USD is fundamentally weak and GBP is gaining strength. I am short in the first trade as I am fading the rally as DXY is set to rebound and conditions are overbought. However in the medium term, I believe USD will become stronger and GBP weaker thus why I believe in the decline in the second trade.
As always good luck and trade safely.
Yours truly,
GekkoWS
The second short position will be a medium term trade. This is an area of huge resistance and is the point of exhaustion for the rising wedge forming. It is also the location of the 1.618 from two significant swings. It is also the location of the 0.618 from the significant swing mentioned earlier. It may even suggest a top to this correction and will allow a play to our target.
Both trades offer excellent R:R and high probability to work due to the position of our entries. Fundamentally speaking, in the near term, USD is fundamentally weak and GBP is gaining strength. I am short in the first trade as I am fading the rally as DXY is set to rebound and conditions are overbought. However in the medium term, I believe USD will become stronger and GBP weaker thus why I believe in the decline in the second trade.
As always good luck and trade safely.
Yours truly,
GekkoWS