GBP/USD potential shorts back downMy analysis revolves around a possible bearish reaction from the 2‑hour supply zones. If price does respect these zones, I’ll look for a sell setup to drive price lower—though I’ll approach with caution because there’s liquidity resting just above those points of interest.
Should price push downward, my next target is the 10‑hour demand zone that triggered the recent change of character. This discounted area could spark a bullish response.
Confluences for GU sells are as follows:
- An unmitigated 4‑hour supply zone overhead.
- A “sell‑to‑buy” scenario fits: price sits closer to supply and still needs a retracement.
- Imbalance and untapped liquidity lie below, inviting a move south.
- Liquidity has just been swept above, leaving a clean supply zone behind.
P.S. If price punches through these supply zones and breaks structure to the upside, I’ll watch for the new zone that forms—there could be a nearer‑term long opportunity from there.
