Time of Analysis: 9:15 PM (Central US) | Current Price: 1.35736
Key Levels: 1.35268 (First Target) → 1.34918 (Final Target) | Retracement Spike: 1.35500 (NY Session)
A Strategic Short Ahead of London & NY Session Weakness
Based on observed price action and intermarket dynamics, GBP/USD is primed for a controlled descent over the next 12–18 hours, with Tokyo/Sydney sessions laying the groundwork for London’s bearish momentum. Here’s the breakdown:
1. Current Setup & Immediate Catalysts
Bearish Continuation Pattern: The pair has shown subtle rejection near 1.35800 (key intraday resistance), with weakening upward momentum. The initial 30-pip drop from the evening high suggests sellers are testing the waters.
Tokyo/Sydney Session Role: These sessions often consolidate or extend late NY moves. With USD strength creeping in (e.g., Treasury yields firming, risk-off sentiment in Asia), a slow grind toward 1.35268 is likely before London opens.
2. London Session: The Accelerator
European Liquidity Dive: London traders will likely exploit the lack of bullish defense, pushing GBP/USD toward 1.34918. Key factors:
Divergence with EUR: If EUR/GBP rallies, GBP/USD suffers compounded selling.
UK Data Lull: No major catalysts = technicals dominate.
Order Flow Clue: The drop to 1.35268 may trigger stop-loss cascades below 1.35500, fueling the next leg down.
3. New York Session: The Trap Spike
Classic NY Fakeout: After a steady decline, NY traders often "test" liquidity with a quick spike (likely 1.35500) before resuming the trend. This would:
Trap late shorts chasing the breakdown.
Provide a optimal entry for bears targeting sub-1.34900.
Fed Shadow: Any USD strength from hawkish Fed whispers (even without news) could cap rebounds.
Risk Considerations
Bullish Threat: A surprise London headline (e.g., BoE hike chatter) could stall the move, but the technical structure favors downside.
Stop Placement: Initial stops above 1.35950 (pre-9:15 PM swing high) for early entries. Adjust to 1.35780 if entering post-Tokyo open.
-------------------------------------
Final Call
"87 pips or bust." This is a high-probability, slow-burn short with defined targets. Tokyo/Sydney sets the table, London serves the main course, and NY adds the dessert spike before the next leg down.
Projected Timeline:
Next 6h (Tokyo/Sydney): Drop to 1.35268.
London Open (3AM CT): Acceleration to 1.34918.
NY Open (7AM CT): Spike to 1.35500, then resumption of selling.
Trade smart, trade ruthless.
Key Levels: 1.35268 (First Target) → 1.34918 (Final Target) | Retracement Spike: 1.35500 (NY Session)
A Strategic Short Ahead of London & NY Session Weakness
Based on observed price action and intermarket dynamics, GBP/USD is primed for a controlled descent over the next 12–18 hours, with Tokyo/Sydney sessions laying the groundwork for London’s bearish momentum. Here’s the breakdown:
1. Current Setup & Immediate Catalysts
Bearish Continuation Pattern: The pair has shown subtle rejection near 1.35800 (key intraday resistance), with weakening upward momentum. The initial 30-pip drop from the evening high suggests sellers are testing the waters.
Tokyo/Sydney Session Role: These sessions often consolidate or extend late NY moves. With USD strength creeping in (e.g., Treasury yields firming, risk-off sentiment in Asia), a slow grind toward 1.35268 is likely before London opens.
2. London Session: The Accelerator
European Liquidity Dive: London traders will likely exploit the lack of bullish defense, pushing GBP/USD toward 1.34918. Key factors:
Divergence with EUR: If EUR/GBP rallies, GBP/USD suffers compounded selling.
UK Data Lull: No major catalysts = technicals dominate.
Order Flow Clue: The drop to 1.35268 may trigger stop-loss cascades below 1.35500, fueling the next leg down.
3. New York Session: The Trap Spike
Classic NY Fakeout: After a steady decline, NY traders often "test" liquidity with a quick spike (likely 1.35500) before resuming the trend. This would:
Trap late shorts chasing the breakdown.
Provide a optimal entry for bears targeting sub-1.34900.
Fed Shadow: Any USD strength from hawkish Fed whispers (even without news) could cap rebounds.
Risk Considerations
Bullish Threat: A surprise London headline (e.g., BoE hike chatter) could stall the move, but the technical structure favors downside.
Stop Placement: Initial stops above 1.35950 (pre-9:15 PM swing high) for early entries. Adjust to 1.35780 if entering post-Tokyo open.
-------------------------------------
Final Call
"87 pips or bust." This is a high-probability, slow-burn short with defined targets. Tokyo/Sydney sets the table, London serves the main course, and NY adds the dessert spike before the next leg down.
Projected Timeline:
Next 6h (Tokyo/Sydney): Drop to 1.35268.
London Open (3AM CT): Acceleration to 1.34918.
NY Open (7AM CT): Spike to 1.35500, then resumption of selling.
Trade smart, trade ruthless.
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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.
Website = coffeeshopcrypto.net
Discord = discord.gg/DmSbuAuAFr
Discord = discord.gg/DmSbuAuAFr
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.