GBPUSD - Strong move breaking key resistance (Watch List)

GBPUSD

I've been playing the short side, but have also been expecting a reversal. I expected 1.45658 to hold and to be a turning point. I was impatient and made a poor decision to enter a long trade expecting at least a modest pullback (~20 pips) at 1.460 - 1.455. Now that support has failed, the question is where does it go from here and what side of the trade do you take? Is this way over done and a significant correction due or will the bears remain in control?

Although I don't trade Monthly or Weekly charts, they often can provide valuable information.

Monthly Chart:

Possible Crab formation. If it's a Crab pattern, there is a ton of down side remaining.

Weekly Chart:

Fib 113% extension area could also be a possible reversal zone (or target for shorts) and it is ~126 pips from current price.


I'm on the side lines and will wait for further price action to determine how or if I'll trade this next week. Without a very strong reversal and a move above 1.500, I'm leaning towards playing the short side and entering after confirmation of key resistance holding.