Looking at the DXY the index has bounced on a key trend line support and has broken out of a falling wedge structure on the 1-hour time frame to the upside. This indicates a corrective rally will occur over the next 24-48 hours. The DXY has had a sharp turn lower over the past couple of weeks and the technicals are indicating a move in the favour of the USD in the short term. The GBPUSD has broken down from a rising trend line support therefore we will look to trade the pair down to the next support level.
DXY 4 Hour chart
GBPUSD 4 Hour Chart
Trade Setup: SELL STOP, execution price 1.2591, stop loss 1.2671 and take profit 1.2415
Stop loss: 80 pips
Take profit: 176 pips