GBPUSD short setup

Potential short scalp setup on GBPUSD as price punched into a local supply area.

Note

Well, as you can see this level did killed the power of the impuls and price get bouncy around it. However, it doesn't mean you should take these levels blind and hope for the best. Best is to wait for confirmation, let price build an anchor to place a SL on and when price dives under the zone, you want to see a clear close and open in your favor. Then you make a move.

When then squad!

Note

Well, 'when' price punches that hard to the zone, 'then' we simply cancel the setup.
If you fomo'ed in for a short, you got rekt.
In my case with my system, I'm now gonna look if the zone becomes a bounce zone.
Be continued..

Note

Well, no significant after rally puts the bounce setup on hold as we already back in the price range. So the supply zone setup is still somewhat valid. Price printed two possible anchors for a stoploss, so a clear close under the zone and a good opening of the next candle under the zone would trigger as sell order.
A possible scenario is that price first prints a compressing pattern, before making another impuls move. Which means we could get some breakout setups.

Note

Only thing now that can save the setup is a double top or M formation, otherwise the setup is canceled and the zone becomes a potential bounce zone in the near future.

Note

Looks like we're gonna look up some old highs and also closing in on the next potential supply zone. But in a very compressed shape, so this might offer a short setup. The previous supply zone didn't offer a great correction and got somewhat ignored on the short side and therefor might become a strong demand zone in the near future.

Note

EURUSD seems to struggle on following up on GBPUSD.
A typical double top formation is shaping, losing momentum and the volume seems dead

Note

DXY seems to be bouncing, so I think we're close solving this bear case haha

Order cancelled

We did finally get our correction scalp, but in the Asian session.
Something I don't trade, cause sleeping
Case closed.

Note

Was quite busy at work, so missed out.
But as you can see, these ignored zones often turn into bounce zone.

Note

Looks like we printed a stepping top pattern were the price impulses making new highs getting smaller relative to the big impulses, which shows a potential loss of strengt, while we also broke the rising channel to the downside. Next we have at the top a significant volume spike against a small candle relative to the spike. This all around a historical supply zone. So a break and open under the zone might offer a great short setup

Trade active

I had my close and open under the zone combined with the scenario written above, so we are live

Trade closed: target reached

An initial TP of 1.5x the risk is taken.
A small portion is still in for an extended target 💪

GoldvalleyCap

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GoldvalleyCap