GBP/USD produced a bearish engulfing candle yesterday. The H4 chart shows that the price has been in a bullish correction. As of writing, the pair is trading around a flipped level of resistance. The price has been bearish in the current H4 candle. If the candle comes out as a bearish reversal candle, the sellers may get an opportunity to go short in the pair.
Chart 1 GBP/USD H4 Chart
The chart shows that the price after making a bearish move had a bounce at the level of 1.25500. It produced two bullish candles consecutively. The pair has been trading around the level of 1.26500 for several hours. The level may work as a flipped level of resistance. If it ends up producing a bearish reversal candle, the sellers may go short below the level of 1.25500. The daily chart shows that the price has enough space to head towards the South. This may attract more sellers.
Trade Summary:
Entry: Sell below 1.25500
Stop Loss: 1.26500
Take Profit 1: 1.24800
Take Profit 1: 1.24400
Take Profit 1: 1.23800