After perusing GBP/USD charts of 1HTF to a lower time frames, I decided to use the 5 MTF seeking the impulse 5 elliot wave. On the 5 MTF as shown above, the 3rd wave end at 5 minutes before Frankfurt open with 4 wave finding resistance at 50% fibo retracement. The 5 SMA has cross the 20 SMA indicating GBP/USD is expected to tag the lower BB moving.
My first entry is for short at vertical line 1 on the 1MTF as shown below with price target at 61.8% fibo extension. At entry all indicators indicate a sell position with 60 EMA acted as a solid resistance level.
The second entry start with a reversal hammer on the 5 MTF with indicators showing a reversal. The exact entry was made at vertical line 2 on the 1MTF. At this line the lag is moving upward crossing the 15 level and MACD line crossing the signal line. There is a positive divergence in RSI. Target was at Assian session high.
