GBPUSD Shorts from 1.25500 down towards 1.24000This bias for GBPUSD this week is not as clean in terms of price entering an ideal zone however, it's still a possibility that could happen so let's look at how we could sell GU. As we know this market has been in a small uptrend recently but, I am still overall bearish (looking at the HTFs) Therefore, I would be waiting for price to enter a near by supply so we can at least sell down towards a demand zone to continue the temporary bullish trend.
Currently, it is approaching a 9hr supply that has caused a small BOS to the downside and price will require some sort of pull back to continue going upwards, hence why this is a counter trend idea. We are also reaching a psychological level of 1.25500 which is another good sign to anticipate a reaction, as this would tell us if price would want to retrace or keep pushing higher.
Confluences for GBPUSD shorts are as follows:
- Price approaching 9hr supply zone that has caused a BOS to the downside.
- The zone also lies between a psychological key figure of 1.25500.
- Pending correction is likely to happen due to the impulse move that has been taken place.
- Lots of liquidity left below in the form of asian lows and there is huge imbalances as well.
- Overall market trend for GU is bearish according to the monthly/weekly time frame.
- Price has swept lots of liquidity already to the upside and momentum is dying down slowly.
P.S. As price still looks pretty bullish I won't be surprised if this zone doesn't hold however, there is also better supply zones above like the 15hr which looks more probable. For now we will wait for our Wyckoff distribution to play out & see if price gives us an entry model for sells.
