GBP/USD – Temporary Shorting from Resistance to Support

Alright traders, let’s break down the GBP/USD 4-hour chart and identify a potential sell setup from the nearest resistance to the nearest support.

On this chart, we can see that GBP/USD is experiencing bearish momentum, as indicated by the price trading below the 21 EMA. The recent price action shows a clear rejection at the nearest resistance level of 1.29303. Given this rejection, we can anticipate a potential move towards the nearest support level at 1.28172.

Here's the plan:

Entry: Look for a sell entry at the current price around 1.2895 or after a slight retracement closer to the 1.29303 resistance level.
Stop Loss: Set the stop loss just above the recent high and the 1.29303 resistance level, around 1.2950.
Take Profit: Target the nearest support level at 1.28172.

This setup takes advantage of the prevailing bearish trend and aims to capitalize on the rejection at resistance, targeting a move down to the established support level.