USD to Pound the Pound? - GBP/USD Ichimoku Short Trade
We had a bearish breakout with this pair last week and I'm presenting two different ways to look to hop into this trade to get into the bearish trend.
I would prefer to see a drawback and rejection which is how I've setup this trade up.
A good rejection at the entry level I've drawn would give me a clear signal to enter.
That is going to give us the best risk to reward and is typically how I prefer to enter trend continuation trades.
As an alternative, if we don't get a drawback, I've drawn out a level that we can set a sell stop entry at.
If we break that level then it will be good enough for me to enter a sell for a further move down.
If either of those scenarios fail to play out, this setup may become invalidated for now.
I would prefer to see a drawback and rejection which is how I've setup this trade up.
A good rejection at the entry level I've drawn would give me a clear signal to enter.
That is going to give us the best risk to reward and is typically how I prefer to enter trend continuation trades.
As an alternative, if we don't get a drawback, I've drawn out a level that we can set a sell stop entry at.
If we break that level then it will be good enough for me to enter a sell for a further move down.
If either of those scenarios fail to play out, this setup may become invalidated for now.