Looking at the GBPUSD which offers a potential bearish trading opportunity to start the trading week off.
If we highlight the overall structure of the market, we can see price is bouncing between a declining trend line, and a major support level. Last week price rallied into the trend line and stalled – creating an indecision doji candle, and then an inside day to follow.
This communicates price stalling and churning, and we’re starting to see weakness develop as the candle bodies are showing lower closing prices for the day.
We’re at a main focus point for this chart at the moment – if prices pushes down lower this session, and breaks lower out of the consolidation combo setup, we could see another move down to the major support level, which would be a logical place for targets.