Inside technicals and chart patterns by 
I posted a GBP/USD swing short last week and here’s the follow up as of this (Monday)…
The 30 minute set up remains the same as it was with perhaps a little more transition to the Wave as prices congest within the middle and bottom lines of the Wave. As prices are still plotting below and within the 34ema close and 34ema low, the 30 minute chart a bearish to neutral. Transitional markets are tricky since the validity for the swing short relies on the four to six o’clock angle of the Wave!
Prices are staying below two important levels on the 30. First is the top line of the Wave because this dynamic level represents the validity point and the stop loss for the swing short…add five pips to it and that’s your stop.
The second level to watch is the 61.8 Fibo.
These two levels together should make for a fairly formidable ceiling but if the transitional look of this timeframe isn’t doing it for you, take a look at the 60.
The 60 minute chart tells a better swing short story this morning as the downtrend is still very much in place as shown by the clock angle of the Wave. The bottom line (and short trigger) on this chart is currently at 1.6137. Remember that the Wave is dynamic resistance in a downtrend.
As usual on my MT4, I have my (free) GRaB plug which you can download from my site and I am still playing around with a plug-in that I bought to test some ideas about trends, trend following and how I set up swing trades over the Summer doldrums. You can read about over at my blog.