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.
