GBP/USD Bearish Setup – FVG Retracement to Target Liquidity Zone
This chart shows a bearish price setup for GBP/USD on the 1-hour timeframe, with smart money concepts, key EMAs, and a clear projection of price movement.
🔍 Technical Analysis Breakdown
1. Price Context
Current Price: 1.28987
Trend: Price has broken market structure to the downside, suggesting a potential shift from bullish to bearish.
Key Indicator Levels:
EMA 30 (Red): 1.29948 – now acting as dynamic resistance.
EMA 200 (Blue): 1.29760 – another strong resistance level just above.
📌 Key Zones Identified
🔵 Fair Value Gap (FVG) – Supply Zone
Location: Between ~1.29760 and 1.30172
Significance: This is a potential liquidity zone where institutions might offload positions.
Plan: Price is expected to retrace up into this FVG before continuing lower.
🔻 Target Zone – Demand Area
Location: Around 1.27396
Labeled: “target point EA”
Significance: This area is projected as the final bearish target, likely aligning with equal lows or liquidity zones.
CHoCH (Change of Character)
Visible at the structure break, confirming bearish intent and a shift in momentum.
🧠 Projected Price Action (In Blue Arrows)
A potential retracement to the FVG zone.
Rejection from this zone.
Continuation to the downside through intermediate pullbacks.
Final target at 1.27396.
🛠️ Trade Idea Summary
Sell Setup:
Entry Zone: 1.29760–1.30172 (FVG)
Target: 1.27396
Stop-Loss: Above 1.30172 (safely outside the FVG)
🧾 Conclusion
This setup aligns with smart money principles — a CHoCH followed by a retracement into an FVG, with downside continuation into a liquidity target zone. The EMAs support the bearish thesis, offering confluence for rejection.
🔍 Technical Analysis Breakdown
1. Price Context
Current Price: 1.28987
Trend: Price has broken market structure to the downside, suggesting a potential shift from bullish to bearish.
Key Indicator Levels:
EMA 30 (Red): 1.29948 – now acting as dynamic resistance.
EMA 200 (Blue): 1.29760 – another strong resistance level just above.
📌 Key Zones Identified
🔵 Fair Value Gap (FVG) – Supply Zone
Location: Between ~1.29760 and 1.30172
Significance: This is a potential liquidity zone where institutions might offload positions.
Plan: Price is expected to retrace up into this FVG before continuing lower.
🔻 Target Zone – Demand Area
Location: Around 1.27396
Labeled: “target point EA”
Significance: This area is projected as the final bearish target, likely aligning with equal lows or liquidity zones.
CHoCH (Change of Character)
Visible at the structure break, confirming bearish intent and a shift in momentum.
🧠 Projected Price Action (In Blue Arrows)
A potential retracement to the FVG zone.
Rejection from this zone.
Continuation to the downside through intermediate pullbacks.
Final target at 1.27396.
🛠️ Trade Idea Summary
Sell Setup:
Entry Zone: 1.29760–1.30172 (FVG)
Target: 1.27396
Stop-Loss: Above 1.30172 (safely outside the FVG)
🧾 Conclusion
This setup aligns with smart money principles — a CHoCH followed by a retracement into an FVG, with downside continuation into a liquidity target zone. The EMAs support the bearish thesis, offering confluence for rejection.
Trade closed: target reached
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Join my telegram (COPY_TRADE)
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Join my refrel broker link
one.exnesstrack.org/a/l1t1rf3p6v
t.me/TOP1INVEESTADMEN
Join my refrel broker link
one.exnesstrack.org/a/l1t1rf3p6v
Related publications
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.