GBP/USD Longs from 1.27000 back up towards 1.28000
I anticipate price heading towards the demand area first. So, early in the week, there might be a potential buying opportunity around the 1.27000 region, where the 9-hour demand is located. However, I'll exercise caution due to the presence of an Asian low, ensuring I don't enter too early. Ideally, I'd prefer to see the Asian low swept and the 3-hour demand mitigated, which sits just below.
As price approaches the buy zone, the validity of buys becomes more apparent. However, if we witness a strong bullish reaction, we might see the imbalance below the 7-hour supply zone filled. In such a scenario, I'll then be on the lookout for short positions, considering that price has displayed a clear shift to the downside.
Confluences for GU Buys are as follows:
- Recent trend was bullish this downward movement could be just a retracement.
- Nice demand zones left that has caused a recent break of structure to the upside.
- Lots of liquidity to the upside as well as an imbalance that needs to get filled in.
- DXY also approaching a near buy supply so the idea makes sense if the dollar goes down.
P.S. Despite the shift in price direction to the downside, I'll focus on what's near the current price. Currently, the 9-hour demand zone is nearby, so I'll be considering buying opportunities to move back up.
Have a great trading week guys and watch out for FOMC Wednesday!
As price approaches the buy zone, the validity of buys becomes more apparent. However, if we witness a strong bullish reaction, we might see the imbalance below the 7-hour supply zone filled. In such a scenario, I'll then be on the lookout for short positions, considering that price has displayed a clear shift to the downside.
Confluences for GU Buys are as follows:
- Recent trend was bullish this downward movement could be just a retracement.
- Nice demand zones left that has caused a recent break of structure to the upside.
- Lots of liquidity to the upside as well as an imbalance that needs to get filled in.
- DXY also approaching a near buy supply so the idea makes sense if the dollar goes down.
P.S. Despite the shift in price direction to the downside, I'll focus on what's near the current price. Currently, the 9-hour demand zone is nearby, so I'll be considering buying opportunities to move back up.
Have a great trading week guys and watch out for FOMC Wednesday!