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

On the Daily chart above, as we observed yesterday, a couple of more recent price actions – in addition to previous ones that we’ve been discussing for over a week – are sustaining our bias in favor a continuing downward price movement: price retracement upward that was halted around the upward trend-line, which acted as a resistance area; and price-break below a former support level – the most recent Daily swing low @ 1.6389 (which we’ve highlighted using the lower blue broken line). Note that this previous support @ 1.6389 is currently acting as a resistance level. These signs are still good enough to sustain our bias for a downward price move – from a day-trade perspective.

On the H4 chart above, yesterday, price broke the most recent swing low @ 1.6483 (which we’ve highlighted using the blue broken line) downward. That price action shifted – and has sustained – our bias in favor of a downward price move. The white horizontal line @ 1.6607 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. 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.