Today on GBPUSD – Daily and H4 charts support Short trades.

On the Daily chart above, an upward trend line was broken downward last week. We could see a negative MACD divergence further confirming out bias for a downward price move.

On the H4 chart above, from a day-trade perspective, we are in a nice downtrend: price keeps forming lower highs and lower lows. The white horizontal line @ 1. 6429 highlights the most recent swing high, and as long as price stays below it, our downward bias remains intact.

However, we still need our hourly charts – using Fibonacci retracement levels and important resistance levels – to seek promising areas to take our short positions. Price pattern on the hourly must also be forming lower highs and lower lows. Please note that our aim is to sell a rally in today’s down trend.

Also, PATIENCE is the key here: we need to patiently wait for the hourly retracement. It might happen, and it might not.