Overview from Weekly Time Frame:
GBPUSD has been rejected for three consecutive weeks at a key weekly resistance zone, forming three weekly pin bars — a strong sign of selling pressure and market exhaustion at the top.
Daily Chart Explanation:
The daily chart reveals a textbook Head and Shoulders pattern, signaling a potential trend reversal. The neckline has been broken, and price is now retesting the breakout zone, aligning with the broader bearish bias.
4H Chart Explanation:
On the 4-hour chart, the trend has shifted to the downside, confirmed by a clean break below the 50EMA. Price has since pulled back into the discounted zone, where sellers may re-enter. Structure now favors lower highs and lower lows 📉.
Plan:
🔻 Bias: Bearish
🎯 Entry: Wait for bearish price action confirmation within the 4H discounted zone (e.g. strong bearish engulfing or trendline break on 1H)
🎯 Targets:
TP1: Recent swing low
TP2: Daily neckline extension
TP3: Weekly support zone
❌ Invalidation: A break and close back above the 4H 50EMA or above the right shoulder level on daily
GBPUSD has been rejected for three consecutive weeks at a key weekly resistance zone, forming three weekly pin bars — a strong sign of selling pressure and market exhaustion at the top.
Daily Chart Explanation:
The daily chart reveals a textbook Head and Shoulders pattern, signaling a potential trend reversal. The neckline has been broken, and price is now retesting the breakout zone, aligning with the broader bearish bias.
4H Chart Explanation:
On the 4-hour chart, the trend has shifted to the downside, confirmed by a clean break below the 50EMA. Price has since pulled back into the discounted zone, where sellers may re-enter. Structure now favors lower highs and lower lows 📉.
Plan:
🔻 Bias: Bearish
🎯 Entry: Wait for bearish price action confirmation within the 4H discounted zone (e.g. strong bearish engulfing or trendline break on 1H)
🎯 Targets:
TP1: Recent swing low
TP2: Daily neckline extension
TP3: Weekly support zone
❌ Invalidation: A break and close back above the 4H 50EMA or above the right shoulder level on daily
Note
Price moves but no entry for me.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.