PREPARING FOR SHORTS ON GBP/USD
GBP/USD 1H - As you can see I have gone ahead and marked out an area of interest for us on the 1H timeframes, I believe price will trade into this area and deliver us with a bearish leg taking us lower.
Before I look to enter I will want to have all pieces of confirmation met, this will come from a BOS to the downside followed by a correction and a second more fractal BOS. As we know the breaks in structure confirm reversals.
The first, more higher timeframe break of structure helps confirm the end of this correction as we would wait for a break in the last protected low, the second break we wait for comes after the penetration of a more fractal Supply Zone, this confirms the end of the initial correction.
We then have confirmation to enter as our pieces of confluence has been met, depending on how refined you want to be you could wait for a third penetration and rejection, or enter from the second.
Before I look to enter I will want to have all pieces of confirmation met, this will come from a BOS to the downside followed by a correction and a second more fractal BOS. As we know the breaks in structure confirm reversals.
The first, more higher timeframe break of structure helps confirm the end of this correction as we would wait for a break in the last protected low, the second break we wait for comes after the penetration of a more fractal Supply Zone, this confirms the end of the initial correction.
We then have confirmation to enter as our pieces of confluence has been met, depending on how refined you want to be you could wait for a third penetration and rejection, or enter from the second.