Besides the recent comeback in the greenback and dovish rhetoric from the Bank fo England, the technical confluence is aligning for GBP/USD from which bears may wish to consider for a shorting playbook.
Daily chart
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The past week’s volume point of control has a confluence with both the prior resistance as well as a 61.8% Fibonacci retracement of the recent bullish impulse.
This confluence offers a deep target on another break below 1.3305. 1.3283 has already been printed which has likely cleared out the buyers.
Meanwhile, with the price below the most recent point of control, the sellers are in control and the retest of the 4-hour resistance adds to the bearish bias.
4HR chart
-637346704915960850.png)
Hourly chart
-637346703008275142.png)
In the meantime, there are three targets on display:
1. The first is derived from a day trade perspective, more to come below, monitored and managed from a 15-min time frame for a 1:4.7 risk to reward ratio.
2. The second is derived from the downside structure, 27th Aug highs, for a swing trading opportunity.
3. The third is derived from the Volume Point of Control for the week commencing 24th August.
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