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

On the Daily chart above, early price action today has probably put an end to the indecision among traders about whether to buy or sell the GBPUSD pair. For about a week now, the GBPUSD pair has been in a consolidation phase – a phase where, as mentioned above, traders are yet to make up their minds in which direction to go.
Earlier today, price swooned by almost 200pips to breach a critical support level @ 1.6165 (which we’ve highlighted using the upper blue broken line) – an action that automatically created another lower high, lower low formation. Currently, from a day-trade perspective, our bearish bias has “resumed.” The next critical support is expected around a potential support-confluence of another Weekly swing low @ 1.5982 (which we’ve highlighted on the Daily chart using the lower blue broken line) and the lower edge of the “minor” downward or bearish channel (the red channel) that we discussed last week.

On the H4 chart above, price has broken the most recent swing low @ 1.6230 (which we’ve highlighted using the blue broken line) downward. That automatically sustains our bias in favor of a downward price move.
The white horizontal line @ 1.6410 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.