We need to keep an eye on GBPUSD these hours. It seems as if its rally has been cooled off. See that ugly evening start candlestick? That might be suggesting that this was just a relief rally and that there is not much upside left without testing the lower trendline of the triangle formed on 4h chart.
While we are almost sure that the lower trendline will be tested, we need to see whether will it be broken or not. In case the lower trendline is broken, a short is on our plays.
Wait for the trendline to be tested.
- If the trendline is breached and 4h candle is closed below the trendline:Enter short immediately
Stop Loss = 1.4192 (above trendline)
Target = Fibonacci 100% Extension 1.4003
- If the trendline holds and there is hesitationEnter Long (Not very advisable)
Stop Loss = Breach of Lower Trendline
Target = 1.43