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

On the Daily chart above, we would observe price is currently around a possible bull-zone: In the past days, we’ve been discussing the possibility of the bears’ move being stalled around a critical support area – the support-confluence of a Weekly swing low @ 1.5982 (which we’ve highlighted on the Daily chart using the blue broken line) and the lower edge of the “minor” downward or bearish channel (the faint gray channel).
However, yesterday, price breached the 1.5982 level and closed below the “minor” bearish channel – a sign that the bears are probably resolved to keep their momentum and disregard the support-confluence. To be more convinced of a continued downward price move, we would prefer to see price break below yesterday’s low @ 1.5920 (not highlighted). If eventually price breaks decisively below the support confluence, our focus will then be on the lower edge of the “major” bearish channel (the red channel), which we would expect to be the next major support area. In all, our bias remains bearish and with clearer coast, we would be seeking Hourly Short trade setups – with the support of the H4 chart.

On the H4 chart above, price broke, at that time, the most recent swing low @ 1.6027 (which we’ve highlighted using the upper blue broken line) downward. That automatically sustained our bias in favor of a downward price move. However, as discussed on the Daily chart, we would like to see price break below yesterday’s low – also the most recent swing low @ 1.5920 (which we’ve highlighted using the lower blue broken line) to be more convinced that price is ready to move further downward today.
The white horizontal line @ 1.6099 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.