GBP/USD (Cable) - Short Position
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Daily - Price has been moving lower and lower,this therefore means we are creating lower highs (LH's) and lower lows (LL's),this gave me the initial thought of a short position.
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4 Hour - Price has just reached a key support level and is now acting as a resistance,at this key level of resistance we have formed a chart pattern known as "Double Top" (this is a bearish reversal pattern,adding more confluences of a short position).Another confluence which gave me an indication of a short position is the "Break & re-test of the resistance".The moving average also gave me another confluence of a short with the moving averages crossing over to indicate a sell.
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Another chart pattern i noticed is a ("Inverse Head & Shoulders pattern"), in order for this to be an inverse head ans shoulders pattern we need to create a "Right Shoulder" (RS) and to do this price would have to move down,this was another confluence for a short position (sell position).
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Take-Profit (TP) target would be around the @1.23336 area,this therefore would create the right shoulder.
Stop-Loss (SL) area would be just above the double top,thus meaning around the @1.25359 area.
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if you have any questions/Enquiries, just drop me a message in the comments !!
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Kind Regards,
Kian P
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Daily - Price has been moving lower and lower,this therefore means we are creating lower highs (LH's) and lower lows (LL's),this gave me the initial thought of a short position.
...
4 Hour - Price has just reached a key support level and is now acting as a resistance,at this key level of resistance we have formed a chart pattern known as "Double Top" (this is a bearish reversal pattern,adding more confluences of a short position).Another confluence which gave me an indication of a short position is the "Break & re-test of the resistance".The moving average also gave me another confluence of a short with the moving averages crossing over to indicate a sell.
...
Another chart pattern i noticed is a ("Inverse Head & Shoulders pattern"), in order for this to be an inverse head ans shoulders pattern we need to create a "Right Shoulder" (RS) and to do this price would have to move down,this was another confluence for a short position (sell position).
...
Take-Profit (TP) target would be around the @1.23336 area,this therefore would create the right shoulder.
Stop-Loss (SL) area would be just above the double top,thus meaning around the @1.25359 area.
...
if you have any questions/Enquiries, just drop me a message in the comments !!
...
Kind Regards,
Kian P