There are lot of things happening on this chart, but for clarity, we'll focus on the smaller ones that are easy to miss from the big picture.
1. Notice the smaller divergence formed (RSI 67.88 - 66.19). This is our area of interest.
2. Horizontal range bound break out targets to 1.69250. So if you haven't bought GBPUSD as the breakout, then forget new long positions.
3. Focus on shorting from 1.69250. Look for any signs of bearish patterns on this end (H4/H1 would be good). Best way is to put a sell limit on retracement after price hits 1.69250 and drops lower.
4. Look for 1 or 2 spikes at the level (from H1 or H4) to identify stops... If any high is formed around 1.7046 with pinbars/dojis/beraish engulfing or similar, it is a confirmation to short.
5. Target 1.6742 (rounded off)
"RR is not that great, but it offers a nice small trade to get some lunch money.. especially if a high is formed at 1.7046 region to short from a pullback to 1.69250."
1. Notice the smaller divergence formed (RSI 67.88 - 66.19). This is our area of interest.
2. Horizontal range bound break out targets to 1.69250. So if you haven't bought GBPUSD as the breakout, then forget new long positions.
3. Focus on shorting from 1.69250. Look for any signs of bearish patterns on this end (H4/H1 would be good). Best way is to put a sell limit on retracement after price hits 1.69250 and drops lower.
4. Look for 1 or 2 spikes at the level (from H1 or H4) to identify stops... If any high is formed around 1.7046 with pinbars/dojis/beraish engulfing or similar, it is a confirmation to short.
5. Target 1.6742 (rounded off)
"RR is not that great, but it offers a nice small trade to get some lunch money.. especially if a high is formed at 1.7046 region to short from a pullback to 1.69250."
