GBP/USD Sells from 1.2700 back downThis week, I expect GBP/USD to continue its downtrend, following a clear change in character and a break of structure on the higher timeframe, signaling bearish momentum. My primary plan is to wait for a retest of the 2-hour supply zone, located above the Asia high. Once the Asia high is taken, I’ll look for confluences to execute potential sell trades.
If the 2-hour supply zone fails to hold, I’ll shift my focus to the 10-hour supply zone, which represents a significant structural point. Should price distribute in this area, I’ll look for major sells to align with the prevailing bearish trend.
Confluences for GBP/USD Sells:
- Liquidity Below: There’s substantial liquidity to the downside waiting to be taken.
- Bearish Momentum: The pair has been bearish over the past two weeks.
- Break of Structure: Price has broken key levels to the downside on the higher timeframe.
- DXY Correlation: The dollar index (DXY) is aligning with this bearish setup.
- Key Supply Zone: A well-defined supply zone caused the initial downside move.
Note: As price approaches the 8-hour demand zone, I’ll also consider any long opportunities to take price up to the supply zone for a countertrend move, rather than waiting for bearish setups exclusively.
