SELL GBPUSD: PRICE BOUNCE OFF THE TREND LINE CLUSTER (Closed)

 This set up, on 4-Hour time frame, looked like a demand channel only that it wasn't. This  was price simply testing  a resistance and I treated it as such.

After drawing trend line over the close of highs on 4-hour, I did the same for the same close on 1-Hour time frame and the result was a cluster. The region covered by the cluster is a "sell zone."

Using Fibonacci retracement and Expansion tools on 1-Hour time frame, Fibonacci retracement-expansion cluster (green lines) meets the trend line cluster at a point upon which price was testing.

I went "Short" on spotting that price stalled in that region and set target 1.5398 ( 70 pips) which was the closest significant level to my entry; and stop at 1.5502 (33 pips).

EVENTUALLY

Price declined soon after to my target. This was an easy trade and it went exactly like I had hoped.

Profit/loss:  + 70 pips

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About Moshow

Oseni Moshood ( Moshow) is a physicist, a blogger and a spot trader with years of experience. He trades only price actions partly because he thinks Economics is boring; or, probably because he failed Economics; and he loves fine artistic works.