Quite an interesting chart set up here actually. We are looking for a moderately long term GBPUSD short trade. We have four trend lines total, two to confirm a bearish break and two more to mark boundaries where the Pound is trending at.
Let's start with the two ascending trend lines. These two trend lines have been placed in order to mark potential points where this bearish pair will trend to the upside. It appears this pair has broken two possible ascending trend lines and this break is quite sharp as well. These two breakouts are very strong, which can be seen by the size of the candlesticks. This is a good sign for us as we are looking to trade the fall.
The two descending trend lines are a bit insignificant. They are there just in case for a bullish upwards move. Rather than closing out a bullish move right away, we can wait it out by seeing how the price plays as it nears the approach of the two descending trend lines.
This is a four hour chart so this signal is good for a few hours up to a few days even. We are in no hurry to close out this trade especially when we can ride a trend.
