GBPUSD Pullback Pending (1.29500 back down)
My bias for GU this week is centered around anticipating a pullback to address the imbalances left behind. This week has witnessed a significant bearish trend for the dollar, leading to increased bullish pressure on GU. Given this scenario, it's evident that price hasn't experienced a healthy pullback yet, which is overdue.
Therefore, I'll be patiently waiting for price to reach my 8hr supply zone, where I anticipate a wyckoff distribution to form. Once I receive confirmation on the lower time frames, I'll initiate sell positions. However, if price decides to drop before reaching the supply zone, I'll consider buying opportunities from the 6hr demand level back up to the designated supply zone.
Confluences for GU Sells are as follows:
- Price overall on the higher time frame like weekly and monthly is still bearish.
- Bullish pressure has been excessive and its due for a pullback.
- Nice supply zone on the 8hr that has caused recent break of structure.
- Lots of imbalances left below left from NFP event that needs filling.
P.S. Given the premium level of this supply zone, I prefer to observe price action slowing down. However, I'll exercise caution and focus on trading opportunities primarily on Monday, Wednesday, and Friday. Tuesdays and Thursdays are notably packed with significant economic events such as CPI & PPI.
Have a good week traders and preserve capital on those days!
Therefore, I'll be patiently waiting for price to reach my 8hr supply zone, where I anticipate a wyckoff distribution to form. Once I receive confirmation on the lower time frames, I'll initiate sell positions. However, if price decides to drop before reaching the supply zone, I'll consider buying opportunities from the 6hr demand level back up to the designated supply zone.
Confluences for GU Sells are as follows:
- Price overall on the higher time frame like weekly and monthly is still bearish.
- Bullish pressure has been excessive and its due for a pullback.
- Nice supply zone on the 8hr that has caused recent break of structure.
- Lots of imbalances left below left from NFP event that needs filling.
P.S. Given the premium level of this supply zone, I prefer to observe price action slowing down. However, I'll exercise caution and focus on trading opportunities primarily on Monday, Wednesday, and Friday. Tuesdays and Thursdays are notably packed with significant economic events such as CPI & PPI.
Have a good week traders and preserve capital on those days!