It has been awhile but wanted to make a post on this trading setup coming together. It was funny because I had been long this pair from the recent structure level in hopes of a 100 pip or so movement to the upside before this drop but this drop came sooner than expected. But anticipated. SO LETS DIVE INTO THIS!
1W CHART: As you can see on the weekly timeframe price has been holding around structure levels of 1.38200 FOR MULTIPLE MONHTS NOW SINCE JULY. Most recently you can see price is breaching this structure level with a strong push of momentum.
1D CHART; On this timeframe it is showing on the daily timeframe we finally see strong seller momentum break to the downside on this currency pair. With the previous momentum of the buyers being taken out. This strong push to the downside shows that this is a good breach and that it was a good level of structure. Now it will be dependent how the pullback comes in. We want to make sure it is a weak and struggling push by the buyers into structure which will display the dominance of the seller in the GBP.
4H CHART; This chart can be used for risk levels as well as entry. Looking for weak buyer pullback back into structure (NEVER WANT TO CHASE A TRADE) and then wait for that "mini-trend" in the pullback to die out with seller momentum coming back to look for opportunity to go short again.
CHEERS!
1W CHART: As you can see on the weekly timeframe price has been holding around structure levels of 1.38200 FOR MULTIPLE MONHTS NOW SINCE JULY. Most recently you can see price is breaching this structure level with a strong push of momentum.
1D CHART; On this timeframe it is showing on the daily timeframe we finally see strong seller momentum break to the downside on this currency pair. With the previous momentum of the buyers being taken out. This strong push to the downside shows that this is a good breach and that it was a good level of structure. Now it will be dependent how the pullback comes in. We want to make sure it is a weak and struggling push by the buyers into structure which will display the dominance of the seller in the GBP.
4H CHART; This chart can be used for risk levels as well as entry. Looking for weak buyer pullback back into structure (NEVER WANT TO CHASE A TRADE) and then wait for that "mini-trend" in the pullback to die out with seller momentum coming back to look for opportunity to go short again.
CHEERS!