GBP/USD Bearish weakening, potential buys from 1.30500This week looks promising for my type of setups, with both sell and buy opportunities presenting decent prospects. I’ll be waiting for high-quality lower time frame confirmations before taking any trades. Depending on which point of interest (POI) gets hit, I’ll adjust, but ideally, I’m looking to sell from the supply zone down toward the demand zone.
Once price reaches the 15-hour demand zone, I’ll shift to looking for buy opportunities, targeting the imbalances above and the untouched Asian session highs. Although the overall trend is bearish and sells look favorable, I plan to wait for a mitigation of the higher supply zones around 1.32500 before committing to any shorts.
Confluences for GU Buys:
- The refined 15-hour demand zone has caused a CHOCH to the upside.
- There are significant imbalances and liquidity above that need to be filled.
- For price to retrace to the supply zone, it must first move upward.
- The US Dollar Index (DXY) is sitting in a strong supply zone, which could trigger a drop in the dollar, supporting bullish momentum for GU.
Note: If the buy scenario doesn’t play out as planned, I’ll wait for a strong supply zone to sell from and continue the bearish trend. However, given that price is already in a higher time frame demand zone, I wouldn’t be surprised to see an upward push as early as Monday.
Gubullish
GBP/USD Longs to Shorts. Bullish pressure weakens...I expect price to push a bit higher to reach the weekly supply zone above. However, since price hasn’t fully broken structure and has instead swept liquidity at the Asian session high before dropping back down, this weakens the validity of the 7-hour demand zone I previously marked.
Given the failure to break structure to the upside, I wouldn't be surprised if price starts to decline. I’ll be watching for it to reach the 6-hour demand zone around 1.32000, where I’ll look for new buy opportunities.
Confluences for GU Longs:
- Price has left a clean 7-hour demand zone, which could trigger a bullish reaction.
- The overall higher time frame trend is bullish, making this a pro-trend idea.
- There’s significant liquidity to the upside, along with an unmitigated weekly supply zone.
- The US Dollar Index (DXY) remains bearish, aligning with the bullish outlook for GBP/USD.
Note: If price reaches the supply zone above, I'll also be looking for a potential reversal, which could present a strong sell opportunity. With NFP (Non-Farm Payroll) this week, be on the lookout for any significant moves.
are bearish end at GBPUSD?as we can see at October 18 this pair break up channel down pattern, and create a new pattern.
With smaller timeline, we can see a new channel down almost end. If this small channel break, bullish setup at :
opening : 1.2232
Stop loss : 1.2168 (64 pips)
Take profit at : 1.2378 (146 pips)
R/r ratio : 2.33