Looking at GBP/USD on the 4H timeframe, it's evident that its been producing bearish structure since Feb.
I have drawn out both a Supply and Demand zone on my chart as I believe now price has tapped into supply we will now see the next impulse down.
I would like to see price come down to the previous level of demand, but before then and before I place a short position on this pair i'll need more confirmation.
This will include a break below the neckline drawn out in yellow, once that's happened I'll look for confirmation of a continuation in the bearish impulse down.
This will be done by looking at the charts through lower timeframes and waiting for confirmation via candlestick patterns.
I have drawn out both a Supply and Demand zone on my chart as I believe now price has tapped into supply we will now see the next impulse down.
I would like to see price come down to the previous level of demand, but before then and before I place a short position on this pair i'll need more confirmation.
This will include a break below the neckline drawn out in yellow, once that's happened I'll look for confirmation of a continuation in the bearish impulse down.
This will be done by looking at the charts through lower timeframes and waiting for confirmation via candlestick patterns.