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

On the Daily chart above, apart from the major downward or bearish channel, which we identified late last month, price is currently within a “minor” one (i.e a “minor” bearish channel). Early price action today had the bears push toward the lower edge of the “minor” bearish channel (the red channel) where they met strong support. At the moment, possibly as a result of the lower edge of the channel, price has retraced upward. While our bias remains bearish, let’s keep in mind this “minor” channel as it might send price retracing further upward – perhaps toward its upper edge. To be on the safe side, it would seem good for us to wait till price closes decisively below the lower edge of the bearish channel – meaning “forgetting” this pair for today.
However, due to strong signals in favor of the bears, as more aggressive traders, we could go ahead to seek Hourly Short trade setups – supported by the H4 chart – while keeping in mind price actions around the lower edge of the channel.

On the H4 chart above, price has broken the most recent swing low @ 1.6254 (which we’ve highlighted using the blue broken line) downward. That automatically sustains our bias in favor of a downward price move. Probably due to the lower edge of the “minor” bearish channel discussed on the Daily chart, we would observe that current price action seems to be forming a reversal candle formation, which might initiate a bullish retracement – although we won’t be able to ascertain any reversal formation until the current H4 candle is fully formed.
The white horizontal line @ 1.6514 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.