GBP/USD price retested the broken daily ascending trend line on the 18th and 19th September, before continuing to the downside early last week. Price then found support at approx. 1.2741 level and began forming a bearish flag late last week between 1.2765 and 1.2700. There is a zone of confluence shortly coming into play between the potential end of the bearish flag and a descending 4H trend line. We will be looking for rejection from the 4H descending trend line, followed by a close below the 1.2700 level before entering another short position on this currency pair. Initial price target will be 1.2550, with a secondary target of 1.2088.
If price closes above the 4H trend line, this analysis would become invalid.
If price closes above the 4H trend line, this analysis would become invalid.