The GBP were under pressure since the begining of May and we have witnessed some singinficant downtrend. The price action is at a major level and created a new lower low but within that downside channel which this pair has been respecting for a while now. Price action has touched and bounced from the trend line
. I'm expecting a few more touches on that line followed by a bullish
candle so that we can go long from here and target the upper band. On the 4h chart we can see clear bullish divergence
which is a plus. That ticks alomst every box and just to be sure we need a few touch followed a bullish engulfing
candle (It can be on 1h or 4h) before going long on this.
Pure rule based trade hence there should not be any trade should it not meet the criteria. I'm bearish
on this pair for long term but we can have short term long on this pair for now.
I have marked the tp and sl for you as well.
Please let me know your thoughts.
Trade safe and good luck.