Back in May, I recommended GBP/USD short trades. The GBP/USD is currently in a downtrend on the Daily chart; therefore, we want to trade GBP/USD short trades in the direction of the overall, longer trend. Since counter trend trades on the 4hr chart against the Daily are usually 1 month trades, we can definitely take advantage of those; however, we want to keep in mind that they will be shorter trades.

Currently, the GBP/USD charts look like this:

Daily: down trend

4hr: down trend

1hr: down trend

My current trade on the GBP/USD is positive 785 PIPs per lot, which is most likely only the first out of three moves making further lows on the GBP/USD.

Next movement: The GBP/USD is currently at 1.4862 and is now positioned to take out a June 2010 low at 1.4687.

The next probable post from me will be exiting the current 4hr trade for a counter trend trade against the Daily.

Happy trading!

LattePIPs