GBPUSD- Possible setup on 4 hours time frame
1. Order Block (OB):
The marked 4-hour Order Block (OB) indicates an area of potential resistance or a supply zone. Price is expected to face resistance in this area (around 1.3180 to 1.3200).
2. Entry:
The entry is planned after a retest of the OB, where the price retraces back to the order block area after an initial rejection. This is noted on the chart as "Entry on Retest" near 1.3162.
3. Stop Loss (SL):
The Stop Loss is set above the order block at 1.32048, providing a safe margin in case the price breaks above the order block zone.
4. Take Profit (TP):
The Take Profit is aimed at 1.30165, which is quite a distance below the current price level. This corresponds to a broader support area or target based on recent lows.
5. Market Structure Breaks:
You have indicated Break of Structure (BOS) zones, showing where the price broke previous lows, marking a bearish sentiment.
A Change of Character (CHoCH) is also identified, suggesting a shift in market direction, supporting the bearish scenario.
This setup is primarily a bearish strategy, targeting a downward move after a potential rejection from the order block zone.
The marked 4-hour Order Block (OB) indicates an area of potential resistance or a supply zone. Price is expected to face resistance in this area (around 1.3180 to 1.3200).
2. Entry:
The entry is planned after a retest of the OB, where the price retraces back to the order block area after an initial rejection. This is noted on the chart as "Entry on Retest" near 1.3162.
3. Stop Loss (SL):
The Stop Loss is set above the order block at 1.32048, providing a safe margin in case the price breaks above the order block zone.
4. Take Profit (TP):
The Take Profit is aimed at 1.30165, which is quite a distance below the current price level. This corresponds to a broader support area or target based on recent lows.
5. Market Structure Breaks:
You have indicated Break of Structure (BOS) zones, showing where the price broke previous lows, marking a bearish sentiment.
A Change of Character (CHoCH) is also identified, suggesting a shift in market direction, supporting the bearish scenario.
This setup is primarily a bearish strategy, targeting a downward move after a potential rejection from the order block zone.
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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.