Technicals: If gbp was a long and uptrend it would have bounced off the blue lines clean however it has been messy around the blue lines the green shaded areas show this. Gold shaded areas are equal lows ’resistance’ where it’s a liquidity pool to take gbp down someone has to be at the other side of the orders. The shaded candle which was very has taken out those equal highs before. And the black line is what retail sees. W formations and most chart patterns are just liquidity pools and they do work sometimes but for a different reason which I won’t get into. Tight sl is always the way to go invalid if it hits sl. Sensible lot size recommended if you take the trade at your own risk. However my calls have been almost spot on. I don’t follow fundamentals but the economic data has been poor showing signs of a potential economic downturn with rate cuts also coming.
All gbp pairs are a short just used this one to demonstrate some analysis.