Looking for a short when price returns to the overhead . My short term bias on this pair in due to the fact we are now quickly approaching January 31st and uncertainty around the short-term outlook for the pound increases in light of Brexit - therefore I believe the fundamentals are in favour of this trade. We have further confluence added by the moving averages seen on the chart which support a short.
Although it is clear that price is being increasinly constrained between the 2 TLs there is still potential to take some pips before breakout occurs.
Our first target is the daily (denoted by the first red arrow) and the purple zone (denoted by the 2nd red arrow)
Let me know what you think?
Please undertake your own analysis before taking any trades as this is just an idea.
Price has now returned to the TL and I will be watching to see where the current 4hr candle closes