GBP/USD Scaled-in Short Trade Added

GBP/USD Key Levels

• Clear break below W L4
• Bearish trend continues
• 1.2108 should be next
• Bears must hold below 1.2230

MEGATREND MAs: Bearish

GBP/USD Technical Analysis on H4

1. Trendline start
2. Support low
3. 2nd trendline touch
4. New entry
5. Target

The GBP/USD is in a short trend. Megatrend moving averages are bearish and we can also spot daily bearish candles along with H4 bearish rejections. The ongoing problem in the UK with Scotland can also weigh on the price. Currently 1.2160 is strong support and intraday break of that level should move the price lower. W L5 is 1.2108 and the ATR projection is 1.2050.

However, if the market doesn’t hold below 1.2183 we might see 1.2230 again and that would endanger the bearish trend on the GBP/USD.

Trading Strategy

I am selling the rallies and two short positions are there for a continuational move down.

This analysis is a part of the Megatrend trading course. I have 2 short positions that I will maintain. The intraday target is 1.2108 while the intraweek target is 1.2060. There is no swing target yet but it might happen if the price breaks 1.2050.

Cheers and safe trading,

Nenad