GBPUSD Shorts towards 1.20400The Bias for this trade will follow the overall bearish market trend, hence why we will be looking for sells to continue in that same order flow. As of the current price we have two supply zones marked out (A) the refined 4hr supply zone and (B) is the 8hr supply zone at the top. I will be waiting for further confirmation like a re-distribution within the 4hr supply and a clean CHOCH to confirm sells however, there are imbalances above the zone so we can also expect that to get filled and then tap into our extreme 8hr supply at the top for a better sell setup to form. Either way, both targets are at 1.20400 which is at a liquidity point or just below where the daily imbalance is which still hasn't been filled.
My confluences for GBPUSD shorts are as follows:
- There is a 4hr supply zone & 8hr supply zone that has caused the CHOCH & BOS to the downside.
- Price has also swept liquidity from the left hence why we have broken into a bearish trend.
- There is a daily imbalance below that hasn't been mitigated as well as wicks in the form or liquidity that hasn't been taken.
- The GU market has been in a bearish trend overall on the higher time frames so we trading with the trend.
- Price is beginning to create lower lows and lower highs which has multiple small BOS's.
P.S. Scenario (A) which is the sell from the 4hr supply zone can be expected to play out during this week but scenario (B) might occur next week. We will see how NFP Friday plays out to give us a better insight into the direction of the market.
