FX.co ★ dusty24 | GBP/USD

Greetings, colleagues. Took a look at the GBP/USD hourly chart. Cable has gotten into a tight squeeze. From above, the quotes are pressed by a local downtrend. From below, the price is still being held by an ascending trendline. We’re getting a classic converging triangle. The situation is very delicate. We’re currently trading around 1.33560. Sellers are clearly serious. Look at the horizontal volume profile. Slightly higher, in the 1.33700–1.33800 range, there’s a thick shelf. A large seller is sitting there. Bulls won’t break through this zone without strong fundamentals. The entire recent bullish impulse has already been completely eaten by the bears. My plan is to work from the short side. Buying in the current structure is too risky. It’s more logical to wait for an impulsive breakout to the downside. I’m waiting for a break of the lower boundary of the triangle. The first target for taking profit is the local level at 1.33505. If it’s broken, the drop will only accelerate. After that, the pair will fly down to collect buyers’ stops at 1.33395 and 1.33280. I’m hiding my protective stop higher up. I’ve placed it above the highs of the last candles at 1.33960. I’ll be entering shorts on a break of the local level. The market is clearly ripe for a good dump. The bulls are running out of strength.