GBP/USD Potential Setup

GBPUSD 4H

GBPUSD Daily

I'm super tired so I'm going to make this post as short as possible.

1. First of all refer to my previous post about GBPUSD. I got stopped out of my remaining quarter position, but just look at the 4H chart above. Can you see how huge the drawdown would have been if I did not take partial profits when I could? It is very psychologically damaging, at least for me.


2. There was another super good pin bar setup on the 4H chart just now but I was out so I missed it. Frankly these are what we should be looking for, clear rejection of significant levels, in sync with higher time frames, nice price action setup. The odds are clearly in our favor if we take such setups.


3. I might have missed the 4H setup but I'm still watching the daily chart for a Fakey/Hikkake setup. This is basically a false breakout of an inside bar setup. In our case now we not only have a potential Fakey, it could also be a pin bar setup. Note that I'm not interested in this just because there is a price action setup, the crucial thing is that this setup is occurring at a significant level and there is no significant support below which means a very decent RR. The daily bar will only close at 6am, I'll take my chances and leave a sell stop below the 3 recent bars as indicated by the line above. Lets see how it goes.

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Update 1:04am

Wow I got stopped in as I was writing that post, didn't expect GBP to tank so much. Lets hope it continues to drop! ;)