GBP/USD Longs from 1.25400 back up to 1.27400This week, I'm watching GU closely for a potential uptrend starting from the 11-hour demand zone below. If price reacts as expected, it could fill the gaps left after Friday's NFP. Another possibility is an upward move from the current 3-hour demand area towards a newly identified 10-hour supply zone.
While navigating this situation, I exercise caution, especially concerning the 10hr supply zone, despite the presence of relative equal highs. Prior to considering any sell positions, I ensure that additional confirming factors align with my analysis. Nonetheless, my bias leans towards seeking buy opportunities, considering the temporary bullish sentiment prevailing in the market.
Confluences for GU Buys are as follows:
- Price is near a clean 11-hour demand zone that has broken structure to the upside.
- Liquidity above zone so when it gets swept we can expect price to re-accumulate within our zone to then buy back up.
- GU has been temporarily bullish as well so it's a pro-trend idea.
- There's lots of liquidity to the upside that needs to be addressed as well as some imbalances.
- Dollar (DXY) is still looking bearish as well which means more upside is still left for GU.
P.S. Examining the higher time frames, we're currently in a consolidation phase with significant liquidity above and below our nearest Points of Interest (POIs). However, for now, I'll stay flexible and adhere to my trading strategy. If price enters any of the zones I've identified, I'll execute my plan accordingly.
HOPE YOU TRADERS END THIS WEEK IN BLUES!
