GBP/USD Short Setup AnalysisGBP/USD Short Setup Analysis
Timeframe: 1H
Bias: Bearish
Overview:
This idea focuses on a potential short setup in GBP/USD based on recent structural behavior, supply and demand zones, and a strong bearish bias following a Break of Structure (BoS).
Key Analysis:
Break of Structure (BoS):
We have two clear BoS points on the chart, indicating a shift in market direction as price continues to form lower highs and lower lows. This pattern is reinforcing our bearish outlook.
Supply Zone:
Price has entered a marked supply zone near the 1.3000 level, highlighted in red. This area represents a high probability for sellers to take control and push the price downward.
Stop-loss is placed slightly above this zone (around 1.3005), minimizing risk in case of an unexpected bullish breakout.
Demand Zone:
The demand zone (highlighted in blue) is positioned below the current price action, around the 1.2845 level. This area is where buyers may step in, making it a key target level for this setup.
Entry, Target, and Stop-Loss:
Entry: Around the 1.2995 - 1.3000 supply area.
1st Take-Profit (TP): Set around the 1.2920 level for a conservative profit target.
Final Target: The final target is located at 1.2845, aligning with the demand zone and potential reversal point.
Stop-Loss: Placed at 1.3005, just above the supply zone to ensure controlled risk.
Trade Summary:
This setup provides a high-risk-reward ratio as it capitalizes on the bearish momentum and market structure shifts. Entering at the supply zone with targets set at key structural levels allows for both a conservative and a more aggressive take-profit approach.
Risk Management:
As always, use proper risk management. Adjust your position size according to your risk tolerance.
Let’s see how the setup unfolds!
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