GBP USD Short Opportunity

Current GBP USD price seems like a good short opportunity to me

• Downtrend in the weekly chart
• Downtrend in the daily chart
• Price is close to resistance at 1.6130

GBP USD is locked in the 1.5870 - 1.6130 range since the Head-Shoulders neckline was broken (since 28.09.09). We are currently trading at the upper end of the range. With the weekly and daily trend pointing down, that opens up a nice short opportunity with a good risk-reward ratio. I entered

• P: 1.6029
• SL: 1.6150

I keep position size "medium", risking 2% of trading capital based on the stop above. If the trade goes in my favor I normally add to the position and pull stops up to break even.

Targets are

• 1.5870 (previous swing low)
• 1.5790 (lower range support)
• 1.53 (about 100% extension from neckline and also a former consolidation zone)

Weekly Chart

Daily Chart



4hr Chart