My analysis for GBP/USD (GU) this week is bearish due to the current mitigation of the daily supply zone. As price is within this zone, I will be looking for price to distribute and then enter short-term sells. Since price is already in the zone but hasn't yet touched the refined zones, I may wait for price to mitigate deeper.
Around the 1.30000 mark, there's a refined supply on the 19-hour time frame. From there, it would be a more ideal place to sell. If price starts to sell off from this level, I will target the next demand zone, allowing me to buy back up again since the current trend is still bullish.
Confluences for GBP/USD Sells are as follows:
Price has been very bullish recently, and bullish pressure is getting exhausted.
There is a strong supply zone on the higher time frame sitting at a psychological level.
Price has left a lot of imbalances and liquidity below that needs to be addressed.
This outlook aligns with the expectation of the DXY increasing slightly.
P.S. If price doesn't sell off on Monday, I can expect price to consolidate a little and push a bit higher to mitigate the daily supply zone more deeply.
Around the 1.30000 mark, there's a refined supply on the 19-hour time frame. From there, it would be a more ideal place to sell. If price starts to sell off from this level, I will target the next demand zone, allowing me to buy back up again since the current trend is still bullish.
Confluences for GBP/USD Sells are as follows:
Price has been very bullish recently, and bullish pressure is getting exhausted.
There is a strong supply zone on the higher time frame sitting at a psychological level.
Price has left a lot of imbalances and liquidity below that needs to be addressed.
This outlook aligns with the expectation of the DXY increasing slightly.
P.S. If price doesn't sell off on Monday, I can expect price to consolidate a little and push a bit higher to mitigate the daily supply zone more deeply.
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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.