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GBP/USD Climbs to 1.2960, Dollar Under PressureGBP/USD trades around 1.2960 in Thursday’s Asian session, extending gains for a third day as the US Dollar weakens with recession fears linked to Trump’s policies. The dollar faces further pressure after February inflation slowed more than expected, raising speculation of an earlier Fed rate cut. Headline inflation fell from 0.5% to 0.2% monthly and from 3.0% to 2.8% yearly, while core inflation dropped to 0.2% monthly and 3.1% yearly. Markets now await US PPI and jobless claims data for further economic signals. If GBP/USD breaks above 1.2980, the next resistance levels are 1.3050 and 1.3100. On the downside, support stands at 1.2860, with further levels at 1.2760 and 1.2660 if selling pressure increases.
by ChartMage
Fair Value Gaps vs Liquidity Voids in TradingFair Value Gaps vs Liquidity Voids in Trading Understanding fair value gaps and liquidity voids is essential for traders seeking to navigate the complexities of the financial markets. These concepts, deeply rooted in the Smart Money Concept (SMC), provide valuable insights into the dynamics of supply and demand, helping to identify potential price movements. In this article, we’ll delve into both ideas, exploring their characteristics, differences, and use in trading. Fair Value Gap (FVG) Meaning in Trading A fair value gap, also known as an imbalance or FVG, is a crucial idea in Smart Money Concept that sheds light on the dynamics of supply and demand for a particular asset. This phenomenon occurs when there is a significant disparity between the number of buy and sell orders for an asset. They occur across all asset types, from forex and commodities to stocks and crypto*. Essentially, a fair value gap in trading highlights a moment where the market consensus leans heavily towards either buying or selling but finds insufficient counter orders to match this enthusiasm. On a chart, this typically looks like a large candle that hasn’t yet been traded back through. Specifically, a fair value gap is a three-candle pattern; the middle candle, or second candle, features a strong move in a given direction and is the most important, while the first and third candles represent the boundaries of the pattern. Once the third candle closes, the fair value gap is formed. There should be a distance between the wicks of the first and third candles. Fair value gaps, like gaps in stocks, are often “filled” or traded back through at some point in the future. They represent areas of minimal resistance; there is little trading activity in these areas (compared to a horizontal range). Therefore, they are likely to be traded through with relative ease as price gravitates towards an area of support or resistance. Liquidity Void Meaning in Trading Liquidity voids in trading represent significant, abrupt price movements between two levels on a chart without the usual gradual trading activity in between. These are essentially larger and more substantial versions of fair value gaps, often encompassing multiple candles and FVGs, indicating a more pronounced imbalance between buy and sell orders. While FVGs occur frequently and reflect the day-to-day shifts in market sentiment, liquidity voids signal a rapid repricing of an asset, typically following significant market events (though not always). These voids are visual representations of moments when the market experiences a temporary absence of balance between buyers and sellers. This imbalance leads to a sharp move as the market seeks a new equilibrium price level. Such occurrences are not limited to specific times; they can happen after major news releases, during off-market hours, or following large institutional trades that significantly move the market with a single order. Liquidity voids are especially noteworthy on trading charts due to their appearance as particularly sharp moves. Though they appear across all timeframes, they’re most obvious following major news events when the market rapidly adjusts to new information, creating opportunities and challenges for traders navigating these shifts. Fair Value Gap vs Liquidity Void Fair value gaps and liquidity voids are effectively the same thing in practice; a fair value gap is simply a shorter-term liquidity void. Both indicate moments of significant imbalance between supply and demand. At the heart of both phenomena is a situation where one significantly outweighs the other, leading to strong market movements with minimal consolidation. The distinction between them often comes down to scale and timeframe. An FVG is typically identified by a specific three-candle pattern on a chart, signalling a discrete imbalance in order volume that prompts a quick price adjustment. These gaps reflect moments where the market sentiment strongly leans towards buying or selling yet lacks the opposite orders to maintain price stability. Liquidity voids, on the other hand, represent more pronounced movements in a given direction, often visible as substantial price jumps or drops. They can encompass multiple FVGs and extend over larger portions of the chart, showcasing a significant repricing of an asset. This distinction becomes particularly relevant when considering the timeframe of analysis; what appears as a series of FVGs on a lower timeframe can be interpreted as a liquidity void. On a higher timeframe, this liquidity void may appear as a singular fair value gap. This can be seen in the fair value gap example above. For traders, it’s more practical to realise that both FVGs and liquidity voids highlight a key market phenomenon: when a notable supply and demand imbalance occurs, it tends to create a vacuum that the market is likely to fill at some future point. Therefore, it’s important to recognise that both these types of imbalances can act as potential indicators of future price movement back towards these unfilled spaces. Trading Fair Value Gaps and Liquidity Voids Trading strategies that leverage fair value gaps and liquidity voids require a nuanced approach, as these concepts alone may not suffice for a robust trading strategy. However, when integrated with other aspects of the Smart Money Concept, such as order blocks and breaks of structure, they can contribute significantly to a comprehensive market analysis framework. Primarily, both FVGs and liquidity voids signal potential areas through which the price is likely to move rapidly to reach more significant zones of trading activity, such as order blocks or key levels of support and resistance. This insight suggests that initiating positions directly within an FVG or a liquidity void may not be effective due to the high likelihood of the price moving swiftly through these areas. Instead, traders might find it more strategic to wait for the price to reach areas where historical trading activity reflects stronger levels of buy or sell interest. Additionally, these market phenomena can inform the setting of price targets. If there is an FVG or liquidity void situated before a key area of interest, targeting the zone beyond the gap—where substantial trading activity is expected—could prove more effective than aiming for a point within the gap itself. It's also useful to note the relative significance of these features when they appear on the same timeframe. An FVG, being generally smaller and indicating a discrete order imbalance, is more likely to be filled before a liquidity void. This is because liquidity voids represent more considerable and pronounced market movements that can set market direction, marking them as less likely to be filled within a short space of time. Limitations of Fair Value Gaps and Liquidity Voids While fair value gap trading strategies and the analysis of liquidity voids offer insightful approaches to understanding market dynamics, they come with inherent limitations that traders need to consider: - Market Volatility: High volatility can unpredictably affect the filling of fair value gaps and liquidity voids, sometimes leading to incorrect analysis or false signals. - Timeframe Relativity: The significance and potential impact of gaps and voids can vary greatly across different timeframes, complicating analysis. - Incomplete Picture: Relying solely on these phenomena for trading decisions may result in an incomplete market analysis, as they do not account for all influencing factors. - Expectations: There is no guarantee that a FVG/void will be filled soon or at any point in the near future. The Bottom Line As we conclude, it's essential to remember that while fair value gap and liquidity void strategies provide valuable insights, they’re part of a broader spectrum of SMC tools available to traders. They’re best combined with other analytical techniques to form a comprehensive approach to trading. For those looking to delve deeper into trading strategies and enhance their market understanding, opening an FXOpen account can be a step toward accessing a wide array of resources and tools designed to support your trading journey. FAQs What Is a Fair Value Gap? A fair value gap occurs when there's a significant difference between the buy and sell orders for an asset, indicating an imbalance that can influence market prices. What Are Fair Value Gaps in Trading? In trading, fair value gaps reflect moments where market sentiment strongly favours either buying or selling, creating potential price movement opportunities. What Is the Difference Between a Fair Value Gap and a Liquidity Void? The main difference lies in their scale: a fair value gap is typically a smaller, discrete occurrence, while a liquidity void represents a larger, more pronounced price movement. How to Find Fair Value Gaps? Traders identify fair value gaps by analysing trading charts for areas where rapid price movements have occurred. A FVG consists of three candles, where the second one is the largest and the first and third serve as barriers. The idea of the FVG is that it leads to a potential retracement to fill the gap in the future. Is a Fair Value Gap the Same as an Imbalance? Yes, a fair value gap is the same as an imbalance in the Smart Money Concept. *Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
GBPUSD - LONGStrong cumulative flat. Buying opportunity after the formation of the Cypher pattern. GBPUSD - LONG ENTRY PRICE - 1.2912 SL - 1.28500 TP - 1.30780 Always follow the 6 Golden Rules of Money Management: 1. Protect your gains and never enter into a position without setting a stop loss. 2. Always trade with a Risk-Reward Ratio of 1 to 1.5 or better. 3. Never over-leverage your account. 4. Accept your losses, move on to the next trade and trust the software. 5. Make realistic goals that can be achieved within reason. 6. Always trade with money you can afford to lose. Please leave your comment and support me with like if you agree with my idea. If you have a different view, please also share with me your idea in the comments. Have a nice day!
Long
by Profit_Trader
Watch These Key Levels & Market Catalyst 📉 GBP/USD Trading Plan 📈 Today, I'm buying dips at support levels: 1.2915, 1.2875, 1.2835/1.2750. I anticipate a potential pullback towards 1.2750 between today and tomorrow. 🔍 Key events to watch: 📊 11 AM (EST) US PPI data – Impact on USD strength 💵 🌍 Trade war tariff updates from the US – Market reaction expected ⚠️ 🕊️ Ukraine-Russia ceasefire agreements – Potential risk sentiment shift 🏦 Market sentiment will largely depend on these factors, influencing USD appreciation or depreciation. Stay vigilant!
by Titan_Pips
GBP/USD Trend During European and US Trading Sessions 🔔🔔🔔 GBP/USD news: 👉The Pound Sterling (GBP) holds onto its gains, trading slightly above 1.2900 against the US Dollar (USD) during Monday’s European session. The GBP/USD pair continues to strengthen as the US Dollar struggles to find momentum amid rising concerns about the US economic outlook. The US Dollar Index (DXY), which measures the Greenback’s value against six major currencies, remains cautious near a four-month low of 103.50. 👉Investor worries over the US economy have intensified following comments from US President Donald Trump on Friday. He suggested that his "America First" policies might cause short-term economic turbulence. While Trump did not explicitly outline the economic impact of his policies, he stated in a Fox News interview that the country is undergoing a "period of transition" due to significant changes. His remarks came in response to questions about whether his policies could trigger a recession. Personal opinion: 👉GBP/USD will continue to maintain its upward momentum in the long term because of economic developments. 👉The US 10-year bond yield is currently down 1.51%, further solidifying the upward momentum for GBP/USD today Analysis: 👉Based on important resistance - support levels and pivot points standard combined with SMA to come up with a suitable strategy Plan: 🔆 Price Zone Setup: 👉Buy GBP/USD 1.2870 - 1.2860 ❌SL: 1.2820 | ✅TP: 1.2930 - 1.2980 - 1.3030 FM wishes you a successful trading day 💰💰💰
Long
by FM-ForexMastermind
2
GBPUSD InsightHello, dear subscribers! Please share your personal opinions in the comments. Don’t forget to like and subscribe! Key Points - The U.S. February CPI recorded a year-over-year increase of 2.8%, falling below market expectations (2.9%) and the previous month’s figure (3.0%), providing relief to the market. - In response to the 25% tariffs imposed by the U.S. on steel and aluminum, the EU and Canada have announced retaliatory tariffs on U.S. products. - Regarding the Russia-Ukraine war, U.S. President Trump stated that U.S. government officials are currently heading to Russia. Meanwhile, Russia has maintained its position that it will respond after receiving concrete information from the U.S. - The Bank of Canada is expected to cut rates as anticipated by the market but has hinted at a hawkish stance by closely monitoring future inflation expectations. This Week’s Key Economic Events + March 13: U.S. February PPI + March 14: Germany February CPI GBPUSD Chart Analysis After breaking through the trend resistance, GBPUSD has maintained a steady uptrend, reaching the 1.30000 level. Since it is near a high point, there is a high possibility of a reversal in the near future, with a potential decline to the 1.28000 level. However, if it surpasses the 1.30000 level and reaches 1.31000, the upside potential will open up again, warranting a reassessment of the trend direction.
Short
by shawntime_academy
GBPUSD H1 I Bearish Drop Based on the H1 chart analysis, we can see that the price is testing our sell entry at 1.2972, which is a multi-swing high resistance. Our take profit will be at 1.2908, an overlap support level. The stop loss will be placed at 1.3039, above the 161.8% Fibonacci extension. High Risk Investment Warning Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. Stratos Markets Limited (fxcm.com/uk): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Stratos Europe Ltd (fxcm.com/eu): CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Stratos Trading Pty. Limited (fxcm.com/au): Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763), please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at fxcm.com/au Stratos Global LLC (fxcm.com/markets): Losses can exceed deposits. Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘TFA Global Pte Ltd’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by TFA Global Pte Ltd. The speaker(s) is neither an employee, agent nor representative of FXCM and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of FXCM or any form of personal or investment advice. FXCM neither endorses nor guarantees offerings of third-party speakers, nor is FXCM responsible for the content, veracity or opinions of third-party speakers, presenters or participants.
Short
by FXCM
GBPUSD stays mysterious but we might have a lead.Though GBPUSD still tells me to wait, I propose that it is approaching in importent level confluenced by a channel and zone, moreover, I think these will provide sufficient resistence for a minor retracement to follow, preceeding a larger bullish move. This is confluenced by a bullish moving average cross and a support level confluenced by the 200 moving average. For now it is a wait until it hits either zone, all the same it is crucial to remember waiting before entering on a break in order to avoid fakeouts. What is interesting is how it paints a picture of either a stronger GBP and/or a weaker USD which may allign with tariff increases by Trump, however I would be amiss in saying a bearish USD would be a very interesting and unique market scenario.
Long
by fukschool90
GBPUSD NEXT MOVE A PULL BACK BEFORE THE BREAKOUT?Counter-Analysis (Bullish Scenario Instead of Bearish) Breakout Instead of Reversal The analysis assumes that GBP/USD will reject at resistance (~1.3112), but if buying pressure is strong, it could break above resistance instead of reversing. A breakout above 1.3112 could trigger further upside movement toward 1.3200+ levels. Support Holds Instead of Breakdown If price pulls back but finds strong support at 1.2800 - 1.2700, bulls could re-enter and push GBP/USD higher. Instead of falling toward 1.2561, the price could consolidate and continue its bullish trend. Trendline Acting as Support Instead of Resistance The red trendline suggests resistance, but if price consolidates above it, the trendline could turn into support, confirming a bullish continuation. Fundamental Catalysts Favoring GBP Strength If the Bank of England (BoE) signals hawkish policies or the USD weakens, GBP/USD could rise instead of fall. Economic data (such as strong UK GDP or inflation) could further support a bullish breakout.
Long
by mrsamfx81