GBPUSD View H4 – Waiting for a break out to the downside for the range

Lud Trader

Active Trader
Nov 3, 2017
I invite you to read our previous analysis on the GBP/USD in the 4-hour time frame.

I was looking for a selling opportunity and I was hoping that the stock market go up to 1.34. The spirit was good, but the entry point was not activated. Too bad, but it is part of the trading.

I am still looking for a short position with a stop loss above 1.33, but I advise to wait the end of the retracement phase before to enter the market in order to have a good risk reward ratio.

The current bearish move is likely to be made of 5 sub-waves, so a new low is expected. Then, an upaward retracement phase is expected. An Andrews’ Pitchfork is drawn to model the bearish impulse. I expect the market to bounced off the lower line.

In this case, I am interested to short around 1.32. This level corresponds to a retracement level, a resistance level and the upper line of the canal. The stop loss should be set above the previous high. If this scenario is validated, I will give you in a forthcoming analysis the Target Profits determined according to the Fibonacci Expansion levels.

We should keep a close watch on the British Pound.

Please, click here to have access to the graphic :
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