Today on GBPUSD – Daily and H4 charts support Short trades, but…

On the Daily chart above, we concluded yesterday that “though… we’re now within a medium term bullish trend, current price actions show we probably have the opportunity to seek Short trades – from a day-trade perspective.” Today, our day-trade bias still remains bearish. Yesterday’s candle closed decisively below the lower edge of the upward or bullish channel – a good sign the bears still have momentum. However, before seeking our Hourly Short trade setups – supported by the H4 chart – we would like to see price break below yesterday’s low @ 1.6605 (not highlighted) to be further convinced of the bears’ strength.
As we also concluded earlier, we expect the most recent Daily swing low @ 1.6514 (which we’ve highlighted using the lowest blue broken line) to act as the next crucial support level.

On the H4 chart above, price broke, at that time, the most recent swing low @ 1.6754 (which we’ve highlighted using the uppermost blue broken line) downward. That automatically shifted our bias in favor of a downward price move. We could observe price’s proximity to previous day’s low – also the most recent swing low @ 1.6605 (that we’ve highlighted using the middle blue broken line), which we discussed on the Daily chart as a support level we would like price to break below before seeking Hourly Short trades. We could also observe the crucial support level @ 1.6514 (that we’ve highlighted using the lowest blue broken line), which we also discussed on the Daily chart. We have about 90-pip gap between the 1.6605 and 1.6514 levels; hence, we seem to have enough room to short this pair – in case price eventually breaks below the 1.6605 level.
The white horizontal line @ 1.6845 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.