On this weekly chart, we are drawing Pitchfork channels on GBPUSD.
On the monthly GBPUSD chart, we can see that the pair has reversed from the 1.4400 level of the horizontal upside resistance and is testing the 1.3476 level also the median line of the Pitchfork downside channel. This is the key level for the downside continuation or a possible upside bounce. You should watch this level closely for the trade entries. A daily close below this level would give a high probability short trade entry, while a bounce would leave the consolidation between 1.3540 and 1.3800 level open.
We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets. Look early next week for a short trade entry with the SL above the 1.3600 level targeting the lower H4 downside Pitchfork channel line.
Happy trading! (click on the chart to enlarge it)
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