GBPUSD Longs from 1.26200 back up to 1.27400I still maintain a bearish outlook on GU; however, there's significant liquidity gathering around the marked trendline above. Consequently, I anticipate this liquidity to be taken out first, creating a CHOCH to the upside. Once this transition occurs, I expect a retracement back to the newly identified 4hr demand zone.
This temporary upward movement is envisioned to enable price to address the existing imbalance fully, eventually reaching the 20hr supply zone where potential selling opportunities lie. I'll be monitoring for the emergence of a Wyckoff distribution pattern within that zone, signalling the continuation of the bearish trend.
Confluences for longs are as follows:
- Price has swept liquidity now pushing higher with momentum.
- There's a new 4 hourly demand zone that has been created.
- lots of liquidity to the upside like asian highs and trendline liquidity.
- For price to continue going down I see imbalance getting filled as well as the 20hr supply being respected.
P.S.This is a temporary idea that I have but I wouldn't be shocked if this recently established 4hr zone is breached, potentially reaching the 10hr demand zone I've identified below. However, considering that price has now cleared out liquidity, I anticipate further upward momentum for now.
Have a great trading week guys!
