The GBP/USD 4H chart is trading within a triangular type pattern. Price is currently trading at the upper trend-line in an overall down market. Therefore, as we see things, there are basically 2 alternatives to short this market:
1. short now at trend-line resistance, with a stop just above previous swing highs
2. short the pattern breakout to the downside, aiming to trade with momentum
While both options are certainly reasonable and carry some merit, we currently favor the 2nd and more conservative alternative.
1. short now at trend-line resistance, with a stop just above previous swing highs
2. short the pattern breakout to the downside, aiming to trade with momentum
While both options are certainly reasonable and carry some merit, we currently favor the 2nd and more conservative alternative.