GBP/USD Hourly Analysis & Day Trading Perspective
I’m looking at GBP/USD on the hourly timeframe, where price is now sitting at 1.339, confirming strong bullish momentum after breaking past key resistance. Here's how I'm approaching today's trading plan:
Market Structure & Key Levels
Resistance at 1.33850-1.34000 – Price is testing this level, and volume confirmation will determine whether we continue upward.
Support at 1.33650-1.33700 – If we see a pullback, this zone could act as a strong bounce area.
Institutional Interest at 1.33250-1.33300 – A liquidity zone where major players may absorb sell-side pressure.
Momentum & Trend Strength
RSI (1-hour): 88.88 → Overbought, meaning we might see consolidation or a retrace before another leg up.
CCI (1-hour): 81.81 → Still bullish, but exhaustion signs are creeping in.
Stochastic RSI (1-hour): 83.32 → Buyers are still in control, but reversals become more likely at extreme readings.
Directional Strength & Trend Confirmation
ADX (1-hour): 13.38 → Weak trend strength, suggesting that price could start ranging.
DX (1-hour): 79.92 → A strong push confirms market participation.
Day Trading Plan
Setup: Bullish Breakout Continuation
Since price has cleared 1.33650, the breakout play is already in motion. Here’s how I’m managing the setup:
Entry: Holding long as price remains above 1.33850, with strong buying pressure.
Target 1: 1.34000, a psychological barrier where liquidity may sit.
Target 2: 1.34250, next significant resistance.
Setup: Liquidity Sweep & Reversal
If price retraces, I’ll look for signs of institutional absorption before considering re-entry.
Entry: If price dips below 1.33650 but quickly reclaims 1.33800, I’ll look for confirmation of a reversal.
Target 1: 1.33950, previous high.
Target 2: 1.34200, extended move.
Order Flow & Volume Profile Considerations
Institutional Absorption: If price briefly drops below 1.33800 but quickly reclaims it, institutions could be absorbing liquidity.
Liquidity Trap: A sharp sell-off into 1.33650 could trigger stop losses before a potential bounce.
Volume Confirmation: If buyers remain strong at 1.33850, the move toward 1.34000-1.34250 is more likely.
Risk Management & Execution Strategy
I’ll monitor candle closures above 1.33850 before committing to further upside targets.
If volume increases, I’ll hold for 1.34000; if it slows down, I’ll consider partial profit-taking.
Watching institutional behavior near 1.33650 will be key for catching potential liquidity grabs.
Right now, GBP/USD is at a critical decision point—either continuation toward 1.34000, or a pullback to absorb liquidity before the next push. The key is watching volume flow and price absorption for confirmation before executing further moves.
I’m looking at GBP/USD on the hourly timeframe, where price is now sitting at 1.339, confirming strong bullish momentum after breaking past key resistance. Here's how I'm approaching today's trading plan:
Market Structure & Key Levels
Resistance at 1.33850-1.34000 – Price is testing this level, and volume confirmation will determine whether we continue upward.
Support at 1.33650-1.33700 – If we see a pullback, this zone could act as a strong bounce area.
Institutional Interest at 1.33250-1.33300 – A liquidity zone where major players may absorb sell-side pressure.
Momentum & Trend Strength
RSI (1-hour): 88.88 → Overbought, meaning we might see consolidation or a retrace before another leg up.
CCI (1-hour): 81.81 → Still bullish, but exhaustion signs are creeping in.
Stochastic RSI (1-hour): 83.32 → Buyers are still in control, but reversals become more likely at extreme readings.
Directional Strength & Trend Confirmation
ADX (1-hour): 13.38 → Weak trend strength, suggesting that price could start ranging.
DX (1-hour): 79.92 → A strong push confirms market participation.
Day Trading Plan
Setup: Bullish Breakout Continuation
Since price has cleared 1.33650, the breakout play is already in motion. Here’s how I’m managing the setup:
Entry: Holding long as price remains above 1.33850, with strong buying pressure.
Target 1: 1.34000, a psychological barrier where liquidity may sit.
Target 2: 1.34250, next significant resistance.
Setup: Liquidity Sweep & Reversal
If price retraces, I’ll look for signs of institutional absorption before considering re-entry.
Entry: If price dips below 1.33650 but quickly reclaims 1.33800, I’ll look for confirmation of a reversal.
Target 1: 1.33950, previous high.
Target 2: 1.34200, extended move.
Order Flow & Volume Profile Considerations
Institutional Absorption: If price briefly drops below 1.33800 but quickly reclaims it, institutions could be absorbing liquidity.
Liquidity Trap: A sharp sell-off into 1.33650 could trigger stop losses before a potential bounce.
Volume Confirmation: If buyers remain strong at 1.33850, the move toward 1.34000-1.34250 is more likely.
Risk Management & Execution Strategy
I’ll monitor candle closures above 1.33850 before committing to further upside targets.
If volume increases, I’ll hold for 1.34000; if it slows down, I’ll consider partial profit-taking.
Watching institutional behavior near 1.33650 will be key for catching potential liquidity grabs.
Right now, GBP/USD is at a critical decision point—either continuation toward 1.34000, or a pullback to absorb liquidity before the next push. The key is watching volume flow and price absorption for confirmation before executing further moves.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.