Today we consider GBP/USD currency pair on the H4 chart. The price is moving within the limits of H4, D1 and W1 downtrend channel: bearish trend is observed for all the timeframe scales. ParabolicSAR historical values are moving along the H4 trend line, confirming the investor sentiment. Donchian Channel is also demonstrating the negative bias. There is no contradiction on the part of the RSI-Bars oscillator: it indicated the daily downtrend. The final bearish confirmation will be obtained when the oscillator bar would cross the support level at 21.9462%. It will likely to coincide with the price breakout at 1.54803. This level is confirmed by the Donchian Channel lower boundary. This mark can be used for opening a pending sell order with Stop Loss placed above the resistance at 1.56163. This is a comfortable position for risk mitigation because the resistance level is strengthened by Parabolic historical values and the D1 trend line. We expect a new volatility momentum of this currency pair after the US Unemployment Claims being released at 14:30 (CET).
After position opening, Stop Loss is to be moved after the Parabolic values, near the next fractal high. Updating is enough to be done every day after a new Bill Williams fractal formation (5 candlesticks). Thus, we are changing the probable profit/loss ratio to the breakeven point.
- Position Sell
- Sell stop below 1.54803
- Stop loss above 1.56163
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