The tip of the current position with GBPAUD (4H) looks like it is near the end of a contracting wedge pattern. We also see some huge scallops.
This may not be a great position. But in situations like these I'd take a stoploss. This could be tricky because one has to expect price to fall out of the wedge and then return inside, moving up. But it could also break...
Here we can see a clear trend line ( TL ) marked out that has been used as previous resistance and now turned support.
We are expecting price to keep bouncing off this TL and following it down in a bearish movement.
We are keeping this 1 short, sweet and simple as that is the best way to look at charts and learn.
Most of the information on the internet to do...
We are expecting to see price drop into our support zone ( purple box ) there is good bearish pressure at the moment and the zone we have marked on our charts is a strong support zone.
Simple charts allow you to see setups more clearly, don't be fooled by these people who have 10000 indicators on there charts, yes that might work for them but simple really is...
I have been waiting for this setup for a while now. Now that XABCD step has been completed and the price action supported it exactly how it should be. Hence we have an opportunity to go long on this. I have marked tp and sl as well.
Let me know your thoughts.
Good luck and trade safe.