GBPUSD - Potential intraday sell trade setup GBPUSD started its selloff on Fridays session as USD strength hit the market on better then expected Non-Farm payroll data.
On today's market open, being Monday the liquidity is usually thinner so we have seen price retrace a little higher which could possibly set up a better entry for a potential continuation move lower on GBPUSD.
On the 15 Minute chart, we have marked out a tight selling zone in price that we want to keep an eye on for if price can make its way up there today we could possibly see a rejection lower.
The first level is the 1.3097 mark. This level is a liquidity gap origin where price started its spike move lower. Most of the volume came from this point so this area could cause price to trade lower. This level can also be seen on the 1 Hour chart from the top of the body of the candle.
The level above that is the 1.3100 big figure which can always be a potential psychological level for additional order flow resting there.
Lastly the highest level is the 5 Minute chart liquidity gap origin set at the 1.3106 level.
All of these levels are very close to each other so we will be watching the entire zone for a possible rejection in price, if price does reach this zone we want to see on a minimum 5 Minute chart any potential bearish price patterns complete which can increase the probability.
If price breaks through these levels for any reason this trade is void and no action will take place. We need price to stop here and show weakness.
