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

On the Daily chart above, as a result of a broad dollar rally yesterday, price has broken the upward channel downward. We expect price to continue its downward move for the time being. There’s a support level – the most recent Daily swing low - @ 1.6309 (which we’ve highlighted using the lower blue broken line); Let’s keep this level in mind when managing our trades (in case we eventually identify a Short trade set-up on our Hourly charts – supported by the H4 chart).

On the H4 chart above, price has broken the most recent swing low @ 1.6389 (which we’ve highlighted using the blue broken line) downward. From a day-trade perspective, this is a good sign supporting a Short trade. The white horizontal line @ 1.6555 highlights the most recent swing high, and as long as price stays below it – in the absence of any new and lower swing high – our bearish or 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; and 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.