Overall, GBPUSD is in a downtrend for the last six months. On the 4H chart we can see a nice evening star pattern forming right at the top of the short term channel. should this be confirmed on the next candle we could see a drop from 1.2225 to around 1.2052 over the next couple of days. I would be looking to enter around 1.2200 and TP in the 1.2050 area, with SL at 1.2260. Stochastic is bumping against overbought, and momentum looks to be going positive at the moment. I am interested in how this next 6 hours plays out, and would definitely wait for a confirmation candle before entering. If the confirmation candle goes down far enough to make the risk-reward ratio unpalatable I would not enter this trade.
I am looking for confirmation on DXY and US02Y 4h charts for this setup.
I am looking for confirmation on DXY and US02Y 4h charts for this setup.
