I expect GBP/USD to retest the previous 1.23000 level. As anticipated last week, price reacted perfectly from my area of interest. Now that the price gap from last week has been filled, I anticipate a move down to mitigate the newly formed 8-hour demand zone.
If price moves higher first, I expect a reaction from the 4-hour supply zone I previously marked at the prior Asian high. If price reaches this level, we may see a brief bearish reaction, but I will wait for a significant structural shift to confirm the market’s next direction.
Confluences for GU Longs:
- A clean 8-hour demand zone has formed, which previously caused a Break of Structure (BOS) to the upside.
- The market has swept previous liquidity, and an untested Asian high remains above.
- Market structure still shows strong bullish momentum, supporting this pro-trend setup.
- There is significant liquidity to the upside that needs to be taken.
- The DXY is following a pattern that aligns with this bullish scenario.
Note: If price breaks structure to the downside, I will wait for a new supply zone to form. However, for now, I expect price to continue pushing higher.
If price moves higher first, I expect a reaction from the 4-hour supply zone I previously marked at the prior Asian high. If price reaches this level, we may see a brief bearish reaction, but I will wait for a significant structural shift to confirm the market’s next direction.
Confluences for GU Longs:
- A clean 8-hour demand zone has formed, which previously caused a Break of Structure (BOS) to the upside.
- The market has swept previous liquidity, and an untested Asian high remains above.
- Market structure still shows strong bullish momentum, supporting this pro-trend setup.
- There is significant liquidity to the upside that needs to be taken.
- The DXY is following a pattern that aligns with this bullish scenario.
Note: If price breaks structure to the downside, I will wait for a new supply zone to form. However, for now, I expect price to continue pushing higher.
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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.