GBP/USD – Trendline Liquidity Grab and Reversal SetupPrice has been respecting a major ascending trendline, forming higher highs and higher lows. Currently, it looks like we’ve had a liquidity grab below the trendline, sweeping early buyers and stop losses.
I'm watching this zone closely for a potential fakeout, followed by a bullish reaction. This area aligns with:
Major ascending trendline support
Previous structure level
High-probability liquidity zone
If price reclaims the trendline with strong bullish momentum, I’ll be looking for buy confirmations to ride the next leg up. A clean rejection and break of short-term bearish structure would strengthen the setup.
Key Notes:
Buy zone highlighted
Waiting for confirmation before entry
Strong RR if price respects the zone
Invalid if price closes below the zone with strong bearish pressure
Let me know your thoughts or if you see it differently!
GBPUSD trade ideas
GBPUSD1. Current 10-Year Bond Yields
UK 10-Year Gilt Yield: 4.77% (as of recent data, driven by strong UK retail sales and elevated long-term yields).
US 10-Year Treasury Yield: 4.54% (as of May 21, 2025, reflecting fiscal concerns and Fed rate cut expectations).
2. Interest Rate Differential (IRD)
The yield spread between UK and US 10-year bonds is:4.77%(GBP)−4.54% (USD)=+0.23%
4.77% (GBP)−4.54% (USD)=+0.23%
This modest differential favors the British pound, as UK bonds offer a slightly higher return than US Treasuries.
3. Carry Trade Advantage
The +0.23% yield spread makes it marginally attractive for investors to borrow in USD (lower yield) and invest in GBP-denominated assets (higher yield).
However, the narrow spread limits significant carry trade profits compared to higher-yielding currency pairs.
GBP strength is further supported by strong UK economic data (e.g., April retail sales up 1.2% MoM) and easing UK-EU trade barriers.
4. Key Factors Influencing the Differential
Bank of England Policy: The BoE cut rates to 4.25% in May 2025 but maintains a cautious stance. Further cuts could pressure gilt yields lower.
Federal Reserve Outlook: Markets price in two Fed rate cuts by late 2025, which may reduce the US yield advantage.
UK Fiscal Risks: High public debt levels (30-year gilt yields >5.5%) and potential fiscal pressures could weigh on GBP if investor confidence wanes.
Summary Table
Metric UK (GBP) US (USD)
10-Year Bond Yield 4.77% 4.54%
Interest Rate Differential +0.23% (GBP over USD) —
Carry Trade Appeal Modest, supported by GBP strength —
Conclusion
The 0.23% yield advantage for GBP provides limited carry trade incentives, but stronger UK economic data and technical bullishness in GBP/USD reinforce near-term GBP strength.
UK fiscal sustainability: Elevated long-term yields pose risks to growth and currency stability.
While the carry trade offers marginal gains, GBP’s upside is primarily driven by macroeconomic outperformance and reduced trade barriers with the EU.
#GBPUSD
GBP/USD - Potential Bearish Reversal Setup
The price recently broke above a long-term trendline but showed signs of exhaustion near a key resistance zone. I expect a potential reversal from the current level, targeting the Fibonacci retracement zones at:
0.38 Fibo: Possible short-term bounce area
0.78 Fibo: Final target zone for the bearish move
The current structure suggests a fake breakout followed by a deeper correction. I’ll be watching for bearish confirmation patterns on the lower timeframes before entering.
GBPUSD Will Fall! Short!
Please, check our technical outlook for GBPUSD.
Time Frame: 12h
Current Trend: Bearish
Sentiment: Overbought (based on 7-period RSI)
Forecast: Bearish
The market is approaching a key horizontal level 1.355.
Considering the today's price action, probabilities will be high to see a movement to 1.336.
P.S
Overbought describes a period of time where there has been a significant and consistent upward move in price over a period of time without much pullback.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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Double Top Alert: Key Resistance at 1.3570 Before US PCE DataGBPUSD PLAN – MAY 27 | Double Top Alert: Key Resistance at 1.3570 Before US PCE Data
GBPUSD is currently testing a critical resistance zone near 1.3570, forming a potential Double Top pattern. As markets await this week’s US Core PCE inflation release, the pair may be at risk of a short-term pullback.
🌍 MACRO FUNDAMENTALS
USD Rebounds Slightly ahead of April’s PCE inflation report – a key Fed inflation gauge due this Friday.
GBP Under Pressure as dovish tones from Bank of England (BoE) officials signal a potential pause in rate hikes.
UK Political Uncertainty and sluggish EU-UK trade talks continue to dampen investor confidence in the pound.
📊 TECHNICAL ANALYSIS
Price Structure: GBPUSD surged from 1.3446 support but is now facing resistance near 1.3570, where a Double Top formation is emerging.
Key Levels:
Resistance: 1.3570 – 1.3580 (previous high and psychological barrier)
Support 1: 1.3496 (confluence of EMA89 and 38.2% Fibonacci retracement)
Support 2: 1.3446
Indicators:
EMA13, EMA34 show early signs of bearish crossover on the 30-minute chart.
RSI approaches overbought territory, hinting at potential bearish divergence.
🎯 TRADE SETUP (IF PRICE REJECTS 1.3570)
🔻 SELL SETUP
Entry: 1.3570 – 1.3550
Stop-Loss: 1.3595
Take-Profit Targets:
TP1: 1.3496
TP2: 1.3446
📌 A bullish breakout only becomes valid if price closes strongly above 1.3590 on the H1 chart.
🧠 STRATEGIC NOTES
Wait for a clear reaction or bearish confirmation near 1.3570 before entering trades.
Avoid chasing trades mid-range; focus on clean breakouts or rejections.
PCE data may trigger volatility — manage risk tightly and prepare for directional momentum.
👉 What do you think of this Double Top scenario? Will GBPUSD reject or break through resistance? Drop your analysis below and follow for daily structured plans!
GBPUSD BULLISH OR BEARISH DETAILED ANALYSISGBPUSD has played out exactly as forecasted, completing a clean bullish leg from the Fibonacci confluence zones and breaking through the key 1.3430 resistance level. The structure remains strongly bullish, and after this minor retest, I’m anticipating another impulsive wave to the upside, with the next target sitting firmly at the 1.3900 level. The pair continues to respect both structure and momentum, showing consistent demand on dips.
Fundamentally, the British pound continues to gain strength backed by sticky inflation data and hawkish tone from the Bank of England. With UK CPI remaining elevated and core services inflation running hot, the BoE is being forced to hold its tightening bias. This contrasts sharply with the Federal Reserve, where recent data shows signs of softening labor markets and cooling price pressure, bringing rate cut expectations back on the table for the second half of 2025.
Technically, GBPUSD has cleanly respected all key fib levels from the previous correction. The breakout above 1.3430 has flipped structure into bullish continuation, and the market has already begun forming higher highs and higher lows on both daily and 4H timeframes. As long as price holds above the 1.3430–1.3450 retest zone, the bullish outlook remains intact with high-probability momentum toward 1.3900.
In current market sentiment, GBPUSD remains one of the strongest trending pairs, with institutions adding to long exposure as the dollar index weakens. As a professional trader, I remain long-biased and look to scale in on lower timeframe retracements. This is a textbook continuation play backed by both technicals and macro momentum. Let the trend work—bulls remain in full control.
Pound Tops $1.357 on Solid DataGBP/USD advanced above $1.357, hitting its highest level since February 2022, as Trump’s delay of the 50% EU tariff boosted global sentiment. The pound also gained from promising April data, with retail sales rising 1.2%, marking the fourth monthly gain. Inflation stayed high at 3.5%, adding uncertainty over the BoE’s next move. Markets now price in a 50% chance of a rate cut by August, with another possible by year-end.
Support lies at 1.3425, with resistance at 1.3600. Other key levels are 1.3850 and 1.3750 above, and 1.3165 and 1.2890 below.
GBPUSD Trending Higher - Can Bulls Maintain Momentum?OANDA:GBPUSD is trading within a clearly defined ascending channel, with price action continuing to respect both the upper and lower boundaries. The recent bullish momentum indicates that buyers are maintaining an advantage, increasing the likelihood of a continued upward trend.
Price has broken through a key resistance zone and successfully retested this area as support, confirming the bullish structure. This retest helps to reinforce the bullish outlook, with the next technical target around the 1.38000 level, in line with the upper boundary of the trend channel.
As long as price remains above the newly established support zone, the bullish trend remains intact. If this support zone is broken, a corrective scenario toward the midline or lower boundary of the channel should be reconsidered.
The analysis reflects a personal view based on price action and market structure, and is not financial advice. Appropriate risk management should be ensured in all trading situations.
GBPUSD SHORT IDEAGBPUSD has been rally up for a while. Currently, there's a divergence signal from the awesome oscillator on the daily timeframe. Switching to 4 hours timeframe, there's a clearer view of what's going on. Based on the 4 hours chart, rising wedge has been formed and there's also a bearish divergence signal from the awesome oscillator. In addition to these, price has mitigated a daily supply zone after taking out a significant high as a liquidity. Then, a bearish engulfing candlestick was formed, signifying potential reversal. On 1 hour timeframe, price has broken out of a rising wedge and retested it.
As a retail trader, one can enter a short position after the bearish engulfing candlestick confirmation. This aligns with the 1 hour breakout and retest. While one can wait for price to break out of the 4 hours rising wedge.
As a smart money trader, one can wait for a change of character and break of structure on the 4 hours timeframe to confirm that price has really changed its trend ready for a reversal.
Either way, one can take advantage of the potential short opportunity on GBPUSD.
Confluences for the short signal:
1. Bearish divergence signal from awesome oscillator on daily and 4 hours timeframe.
2. Rising wedge on 4 hours timeframe.
3. Price mitigating daily supply zone.
4. Price has taken out a significant high as a liquidity.
5. Bearish engulfing candlestick formation on 4 hours timeframe.
Disclaimer: This is not a financial advice. The outcome maybe different from the projection. If you can't accept the risk, don't take the signal.
GBP/USD – Rejection at Key Supply Zone | Bearish Momentum The GBP/USD pair just got rejected from a strong supply zone at 1.3575, which has acted as resistance several times. After tapping this zone, we've seen a clear shift in momentum, with price breaking below the immediate structure.
Key Levels:
Resistance Zone: 1.3575 (Supply)
Mid-Level Support: 1.3465 – price could retest this as the next key decision area.
Major Demand Zone: 1.3346 – previously respected with strong bullish reaction.
Trade Idea:
If price fails to reclaim the 1.3575 zone, we could see a deeper retracement:
Short Setup Trigger: Break and retest below 1.3540
Target 1: 1.3465 (structure support)
Target 2: 1.3346 (major demand)
Fundamentals to Watch:
US Dollar events (highlighted on the chart) could add volatility—stay sharp during news releases.
Be mindful of liquidity grabs and fakeouts around these zones.
Bias:
Short-term bearish as long as price stays below 1.3575. Look for entries on lower timeframe confirmations.
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What are your thoughts?
Are you bullish or bearish on GBP/USD this week? Drop your analysis and let’s discuss!
#GBPUSD #Forex #PriceAction #LuxAlgo #SupplyAndDemand #SmartMoney #ForexTrading #TechnicalAnalysis #TradingView
Idea for GBPUSD📉 GBP/USD SHORT SETUP
🟢 Entry: 1.36005
❌ Stop Loss: 1.36114 (↕️ 11 pips)
✅ Take Profit: 1.35697 (↕️ 30pips)
🎯 Risk-Reward Ratio: ~2.80R
🧠 Reason: Price rejected from supply zone, clean bearish structure, SL above last liquidity grab. Clean risk-defined short.
📈 GBP/USD LONG SETUP
🟢 Entry: 1.35011
❌ Stop Loss: 1.34904 (↕️ 11pips)
✅ Take Profit: 1.35417 (↕️ 40 pips)
🎯 Risk-Reward Ratio: ~3.8R
🧠 Reason: Demand zone bounce, stop hunt confirmed. Targeting previous imbalance above. Risky entry, aggressive sizing – use only if confident.
GBPUSD SHORTFollowing on from my idea I posted on May 14th.
GBPUSD Short aiming for the demand zone at 1.28000
We've had a break of structure to the downside on the 1H chart at 8:00am BST inside a clear 1D supply zone.
There is still the risk of EQL high liquidity that could send this trade past my stop loss but there is a big rejection candle on the 1H which broke the structure to the downside.
First demand zone to tackle would be the zone at 1.34400 but if this gets blown through there is a lot of open price action back down to 1.28