GBPUSD Institutional Orderflow Example

MONTHLY

We see a bounce from a monthly order block
We also failed to displace below a previous swing low. Because it's a higher time frame, this could indicate that a lot of liquidity has been absorbed by institutional players.
The next area of interest on the monthly could be the fair value gap that formed within the series of downclose candles

DAILY

Now that we have an idea on where the higher time frame might move to, we can use this on our lower time frames to better predict price movement.
We see clear signs of market makers soaking up liquidity and accumulating buy orders around the monthly order block area. This happens gradually, because big institutional players have big orders, they can not enter the market all at once. You see that the accumulation of buy orders is taking up to 6 days.
We then see a big upclose candle with displacement above a previous swing high. This move indicates a market structure shift, giving away the intentions of market makers to drive price higher again.
The upclose candle that shifted structure left a daily order block, that got filled the next day. This is also a clear sign of institutional sponsorship defending their orders. The candle that filled the order block also displaced above the previous swing high, confirming our shift in structure.
The price action that followed is clearly bullish, creating higher highs and lower lows. We see that price also took buy stops above previous swing highs. These previous swing highs can now be see as low resistance liquidity.
On the daily time frame, we see a bullish fair value gap yet to be rebalanced. We can thus anticipate a retracement into that fair value gap.
We are currently sweeping Monday's high, which could be the start of the retracement. But we could also still hit the mean threshold of the 2 upclose candles that can be seen as a propulsion block
We will wait for price to reach for that fair value gap to look for a new buying opportunity. Idealy, we want to see a swing low form on the daily in the fair value gap. If price would rebalance the fair value gap, we want to zoom in to intraday levels to look for entry points.

Pauwero

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