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Fundamental Market Analysis for December 19, 2024 EURUSDThe Pound-Dollar pair is strengthening after dropping more than 1% following the hawkish decision by the Federal Reserve (Fed) on Wednesday and is trading near 1.25900 in Asian hours on Thursday. The Pound Sterling (GBP) is receiving upward support as the Bank of England (BoE) is expected to leave interest rates unchanged later in the day, while maintaining focus on addressing elevated domestic inflation. On Wednesday, data emerged that the U.K. Consumer Price Index (CPI) rose 2.6% year-over-year in November after rising 2.3% in October. The core CPI, which excludes volatile food and energy, rose 3.5% year-on-year in November, up from a previous increase of 3.3%. Meanwhile, annualized services inflation remained at 5%, below the forecast of 5.1% but above the Bank of England's estimate of 4.9%. GBP/USD declined on the back of a stronger US Dollar as the Federal Reserve (Fed) decided to cut rates by 25 basis points (bps) at its December meeting on Wednesday, bringing the benchmark lending rate to a range of 4.25%-4.50%, a two-year low. On Thursday, traders will be watching for weekly data on initial jobless claims, existing home sales and the final annualized third quarter (Q3) gross domestic product. Trading recommendation: Watch the level of 1.26000, if the level is fixed above consider Buy positions, if the level rebounds consider Sell positions.
by Fresh-Forexcast2004
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.
Short
by Hassan_fx
GBP/USD Longs from this weekly demand This week, my analysis suggests that GU is likely to experience a bullish reaction from its current position. Price is sitting within a key weekly demand zone and has already surpassed the 50% retracement mark, signaling a potential area for long opportunities. At the current level, there is a 1-hour demand zone nearby, with another demand zone just below it. I plan to watch for price accumulation in these areas, particularly to take out the weekly low. Once that occurs, I’ll look for my lower time frame confirmation to enter long positions. My primary target will be the Asian session high near the supply zone above. Confluences for GBP/USD Longs: - Liquidity Targets: Significant liquidity rests above, including the Asian session high. - Supply Zone Mitigation: A strong supply zone above has yet to be mitigated. - Retracement Setup: The bearish trend suggests the need for a retracement upward. - Imbalances Above: Price has left clear imbalances that need to be filled. - Weekly Demand Zone: Price is currently reacting within a high-probability weekly demand area. P.S.: If price opens the week with bullish momentum but doesn’t provide a clear entry setup, I’ll shift my focus to the mitigation of the supply zone above. This would present potential sell opportunities to continue the broader bearish trend.
Long
by Hassan_fx
Fundamental Market Analysis for November 21, 2024 GBPUSDThe GBP/USD pair declined to 1.26500 during Asian trading on Thursday. This decline can be attributed to the weakening of the US dollar (USD). The US Dollar Index (DXY), which measures the value of the dollar against six major peers, is holding near 106.50 at the time of writing. However, downside risk to the US Dollar may be limited due to cautious remarks from Federal Reserve (Fed) officials. Boston Fed President Susan Collins said on Wednesday that while further interest rate cuts are necessary, policymakers should proceed cautiously to avoid moving too fast or too slow, Bloomberg reported. Meanwhile, Fed Chair Michelle Bowman emphasized that inflation has remained elevated over the past few months and stressed the need for the Fed to take a cautious approach to rate cuts. The Reuters poll showed that nearly 90% of economists (94 out of 106) expect a 25 bps rate cut in December, which would bring the federal funds rate down to 4.25-4.50%. Economists forecast a slower rate cut in 2025 due to the risk of higher inflation as a result of President-elect Trump's policies. The federal funds rate is forecast to be 3.50-3.75% by the end of 2025, 50 bps above last month's forecast. GBP/USD's upside potential seems restrained due to safe-haven flows amid the escalating conflict between Russia and Ukraine. On Wednesday, Ukraine fired a salvo of British Storm Shadow cruise missiles into Russian territory, marking the latest use of Western weapons against Russian targets. This came after Ukraine used U.S. ATACMS missiles the previous day. Trading recommendation: Trade mainly with Sell orders from the current price level.
Short
by Fresh-Forexcast2004
Fundamental Market Analysis for November 18, 2024 GBPUSDThe Pound-Dollar pair starts the new week on a subdued note and is consolidating in a range above the round 1.26000 mark, or the lowest level since mid-May, reached on Friday. For now, spot prices appear to have broken a six-day losing streak on the back of a modest decline in the US Dollar, although the fundamental backdrop supports the prospects for an extension of the recent established downtrend. The US Dollar remains on the defensive below the one-year high (YTD) set last Thursday as bulls took a pause to take a breather after the explosive rally following the US election. However, any meaningful decline in the dollar seems unlikely amid expectations that US President-elect Donald Trump's policies are likely to revive inflationary pressures and limit the scope for further rate cuts by the Federal Reserve (Fed). This has been a key driver of the recent rise in US Treasury bond yields, suggesting that the path of least resistance for the US Dollar lies to the upside. The British Pound (GBP), on the other hand, may struggle to attract buyers amid uncertainty over the Bank of England's (BoE) future interest rate path. Data released last week showed that UK wage growth excluding bonuses slowed in September, while the unemployment rate rose to 4.3% from 4.1%. In addition, UK GDP unexpectedly contracted in September for the first time in five months, reinforcing expectations of a BoE rate cut. Nevertheless, Bank of England members are not expected to cut interest rates at the December meeting. This, in turn, makes it reasonable to expect strong follow-through buying to confirm that the GBP/USD pair has formed a short-term bottom. Bearish traders, however, can now wait for a sustained breakout and consolidation below the 1.2600 round figure before placing new bets amid a lack of market-significant economic releases on Monday from both the UK and the US. Trading recommendation: Watch the level of 1.26000, if consolidated below consider Sell positions, if rebounded consider Buy positions.
by Fresh-Forexcast2004
Fundamental Market Analysis for November 14, 2024 GBPUSDGBP/USD extends its decline to 1.26850 in Asian trading hours on Thursday. The US dollar (USD) rally to the highest level since November 2023 is putting pressure on the major pair. Later on Thursday, Bank of England (BoE) Governor Andrew Bailey will deliver a speech. Data released by the US Department of Labor Statistics on Wednesday showed that the US Consumer Price Index (CPI) matched expectations, rising 2.6% year-on-year in October. Meanwhile, the core CPI, which excludes the more volatile food and energy categories, rose 3.3% y/y in October, matching the forecast. Markets expect the U.S. Federal Reserve (Fed) to continue cutting rates at its next meeting in December. “The Consumer Price Index offered no surprises, so for now the Fed will continue to cut rates in December. However, next year is a different story given the uncertainty surrounding potential tariffs and other Trump administration measures,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. Fed officials remain cautious about cutting rates. On Wednesday, Dallas Fed Chairwoman Laurie Logan said the U.S. central bank should be cautious about further interest rate cuts so as not to inadvertently ignite inflation. In addition, St. Louis Fed President Alberto Musalem said stagnant inflation figures make it difficult for the U.S. central bank to cut rates further. Traders are raising bets on another quarter percent rate cut in December, albeit at a slower pace, before mid-2025. Trading recommendation: Trade predominantly with Sell orders from the current price level.
Short
by Fresh-Forexcast2004
GU imminent buys to sell idea?My analysis for GBP/USD (GU) is still bearish at the moment, as the DXY (Dollar Index) has been very bullish. Additionally, GU has broken structure to the downside, and there's a clean supply zone that aligns with this bearish trend. However, as price is currently in my demand zone, I will be looking for confirmation to buy temporarily for a retracement. If price does not respect the 1-hour demand zone, I expect it to accumulate slowly, approaching the demand zone below. In that case, I’ll wait for the price to reach this lower zone before looking to buy. If this scenario doesn't play out, I will wait for the price to rally up and then look for short opportunities to sell again. Confluences for a GU Long: - The market has been very bearish, and a pullback is likely. - There is a lot of liquidity to the upside, including Asia session highs and trendline liquidity. - A clean demand zone lies below a liquidity level, offering potential buy opportunities. - The DXY has left imbalances below due to recent news, suggesting the dollar could decline temporarily. Note: If price rallies up and breaks the current high, I would expect an upward continuation, as there's significant liquidity being built up above for GBP/USD. Wishing you a successful trading week ahead!
Long
by Hassan_fx
Fundamental Market Analysis for November 11, 2024 GBPUSDThe GBP/USD pair starts the new week on a softer note, although it fails to find continued selling and remains range-bound around the 1.29000 mark amid mixed fundamentals. The US Dollar (USD) is holding below the four-month high reached last week amid expectations that US President-elect Donald Trump's policies will spur inflation and limit the Federal Reserve's (Fed) ability to aggressively ease policy. This, in turn, is seen as a key factor acting as a headwind for GBP/USD, although the Bank of England's hawkish stance is helping to limit rate cuts. In fact, the Bank of England has warned that the expansive Autumn Budget presented by Chancellor Rachel Reeves is expected to spur inflation, suggesting a cautious stance on rate cuts in 2025. In addition, risk-on sentiment is helping to limit the rise of the safe-haven US Dollar and providing some support for the GBP/USD pair, allowing for some caution before making aggressive bearish bets. Investors also seem reluctant and may prefer to stand back ahead of important macroeconomic releases from the UK and US. This week's economic calendar includes UK employment data on Tuesday, US consumer inflation data and the Producer Price Index (PPI) on Wednesday and Thursday respectively, followed by preliminary UK Q3 GDP and US retail sales on Friday. Trading recommendation: Watch the level of 1.29000, if the level is fixed below consider Sell positions, if the level bounces back consider Buy positions.
by Fresh-Forexcast2004
Fundamental Market Analysis for October 31, 2024 GBPUSDThe Pound-Dollar pair continued to decline to the 1.29550 level in the early Asian session on Thursday. The Pound Sterling (GBP) is declining following the UK budget announcement. Later on Thursday, attention will shift to US Personal Consumption Expenditure (PCE) price index data. The UK's New Labour government released its first budget on Wednesday, which includes a GBP 40 billion tax hike to plug a hole in public finances and allow investment in public services, CNBC reported. One of the measures that is projected to bring the most revenue to the UK's coffers is an increase in the amount employers pay in National Insurance (NI), a payroll tax. US Gross Domestic Product (GDP) for the third quarter came in below expectations. ADP's October employment change report showed that private companies hired more people than expected. According to the CME FedWatch tool, traders estimate the probability of a 25bp Fed rate cut at the November meeting at nearly 95.2%. The release of US PCE inflation data on Thursday may provide some hints on the size and pace of a rate cut by the US Federal Reserve (Fed). Core PCE is expected to rise 0.2% m/m in September, while core PCE for the same period is expected to rise 0.3% m/m. The softer-than-expected result may raise hopes for deeper rate cuts and put pressure on the US dollar. Trading recommendation: Watch the level of 1.29500, if the level is fixed below we consider Sell positions, if the level rebounds we consider Buy positions.
by Fresh-Forexcast2004
Fundamental Market Analysis for October 28, 2024 GBPUSDThe GBP/USD pair started the new week on a weaker note and is trading around 1.29600-1.29550. Spot prices, however, remain within striking distance of the lowest level since August 16, near 1.29000 reached last week, and appear vulnerable to an extension of the month-long downtrend amid a bullish US Dollar (USD). On Friday, the U.S. Census Bureau reported that U.S. Durable Goods Orders fell 0.8% in September, which was slightly better than expectations of a 1% decline. Additional details of the report showed that new orders excluding transportation costs rose 0.4% in the reporting month. In addition, the University of Michigan's consumer sentiment index hit a six-month high of 70.5 in October, which was better than both the preliminary result and the previous month's reading. This data supports the view that the Fed will continue to moderate rate cuts throughout the year, which in turn triggers a new rise in US Treasury yields and continues to support the dollar. The British Pound (GBP), on the other hand, is weakened by rising bets on further interest rate cuts by the Bank of England (BoE) in November and December, backed by a drop in the UK Consumer Price Index to its lowest level since April 2021 and below the central bank's 2% target. The aforementioned fundamental backdrop suggests that the path of least resistance for the GBP/USD pair lies to the downside. Even from a technical perspective, recent repeated failures near the psychological 1.30000 mark support the prospects of a continued decline from the 1.34350 area, or the highest level since February 2022, reached last month. Trading recommendation: Trade predominantly with Sell orders from the current price level.
Short
by Fresh-Forexcast2004
GBPU/USD Shorts from 1.30200 continue trend!GU Analysis Breakdown: This week, my GU analysis centres on the idea that price will continue to follow its bearish trend. With a recent structure break to the downside, price has left behind a clean, unmitigated supply zone. I’ll be watching for a retest in this area as an opportunity to catch potential sell positions. If price revisits the 10-hour demand zone I’ve marked, I’ll also be open to a potential bullish reaction there. Should this demand fail, I’ll look for a deeper mitigation at the next demand level below. Confluences for GU Sells: - The DXY has been very bullish, signalling a continued downward bias for GU. - GU has maintained a bearish structure, aligning with this pro-trend idea. - An untouched supply zone offers a key area for potential sell entries. - Significant liquidity below, providing additional targets. - The 1-hour supply is positioned at the psychological level of 1.30000. P.S. There’s a strong pool of liquidity above my supply, so if price briefly moves higher to take the trendline liquidity, it wouldn’t be surprising. Stay diligent, and have a great trading week, everyone!
Short
by Hassan_fx
Fundamental analysis of the market for 16.10.2024 GBPUSDGBPUSD: The GBP/USD pair is trading around 1.3065 today, although it lacks bullish confidence. The release of the UK Consumer Price Index news event weakened the Pound against the Dollar. Ahead of the key data release, speculation that the Bank of England (BoE) may move to accelerate its rate cut cycle continues to undermine the British Pound (GBP) and act as a headwind for the GBP/USD pair. That said, the moderate decline in the US Dollar (USD) is providing some support to the currency pair and helping to limit the downside. From a technical perspective, the range-bound price action can still be categorized as a bearish consolidation phase amid the recent pullback from the 1.3435 area, or the highest level since March 2022, reached last month. In addition, the oscillators on the daily chart are holding in negative territory and are still far from the oversold zone. Trading recommendation: Trading mainly by Sell orders from the current price level.
Short
by Fresh-Forexcast2004
GBP/USD Fluctuates in a Narrow Range Amid Economic DataOn Tuesday, the GBP/USD pair traded within a narrow range between 1.3077 and 1.3080, showing a slight rebound from a demand area. Despite the modest movement, the market is still waiting for more significant developments before making larger moves. UK Economic Data Supports GBP Stability Earlier on Tuesday, the Office for National Statistics (ONS) released key employment data, which provided some support for the British Pound. The ILO Unemployment Rate for the three months leading up to August eased to 4.0%, down from 4.1% in July. Additionally, Employment Change figures showed an increase of 373K in August, up from 265K in July, indicating continued resilience in the labor market. However, the report also showed a slight softening in wage inflation, as the Average Earnings excluding Bonus dropped to 4.9%, down from 5.1%. While wage growth moderated, the overall labor market data was positive enough to give the Pound some stability in the early session. US Data and Market Outlook The economic calendar is light for the US on Tuesday, with no major data releases expected. The market’s focus will shift to Thursday when the USD Core Retail Sales (m/m), Retail Sales (m/m), and Unemployment Claims are due to be released. These reports are expected to bring more volatility to the GBP/USD pair, as they will provide insights into the strength of the US economy and the potential direction of the US Dollar. Until these data are released, the British Pound may continue to hold onto small gains, but the overall market mood remains cautious. Technical Outlook: Bearish Momentum Ahead? From a technical standpoint, GBP/USD remains under bearish pressure, and we anticipate a potential continuation of this trend. While the pair has found some temporary support around the current levels, we expect the bearish momentum to continue until the pair reaches a more solid demand zone around the 1.2800 level. Until the pair approaches this level, we are refraining from opening any new positions, waiting for more clarity on market direction and potential retracement signals. Conclusion GBP/USD is holding steady in a narrow range as UK labor market data provides temporary support. However, the overall outlook remains cautious, with the potential for further bearish pressure. Investors should keep an eye on Thursday’s US data releases, which could trigger more significant movements in the pair. For now, we are waiting for GBP/USD to reach a stronger demand area before considering any new positions. ✅ Please share your thoughts about GBP/USD in the comments section below and HIT LIKE if you appreciate my analysis. Don't forget to FOLLOW ME; you will help us a lot with this small contribution.
by FOREXN1
1
Fundamental Market Analysis for October 11, 2024 GBPUSDThe Pound-Dollar pair is unable to capitalize on a modest rebound from the 1.30200 area or one-month low and has been fluctuating in a narrow range during the Asian session on Friday. Spot prices are currently hanging around the mid-1.30000 area, unchanged for the day, and seem vulnerable to a continuation of the recent corrective decline from the highest level since March 2022 reached last month. US initial jobless claims data released on Thursday pointed to signs of weakness in the US labor market and suggested that the Federal Reserve (Fed) will continue to cut interest rates. This kept the US Dollar (USD) on the defensive below its highest level since mid-August and provided some support for the GBP/USD pair. Nevertheless, investors seem to have already fully appreciated the possibility of more aggressive Fed policy easing. These expectations were confirmed by the minutes of the September FOMC meeting and stronger than expected US consumer inflation data. In addition, persistent geopolitical risks associated with ongoing conflicts in the Middle East serve as a tailwind for the safe-haven US Dollar and limit GBP/USD growth. From the latest developments: the Israeli army claimed to have killed the top commander of the Palestinian militant group Islamic Jihad in the Nur Shams refugee camp in the occupied West Bank. This, as well as market confidence that the Bank of England (BoE) may be about to accelerate its rate cut cycle, could continue to undermine the British Pound and keep the currency pair under control. Market participants are now awaiting the release of UK macroeconomic data, including monthly GDP, to provide some momentum. However, the focus will remain on the US Producer Price Index (PPI), which will be released later in the North American session. In addition, on the economic front, the US will release preliminary data on the Michigan Consumer Sentiment Index and inflation expectations. This data, along with the speeches of influential FOMC members, will stimulate demand for the US dollar and allow traders to take advantage of short-term opportunities in the GBP/USD pair on the last day of the week. Trading recommendation: Trade mainly with Sell orders from the current price level.
Short
by Fresh-Forexcast2004
Market Fundamental Analysis for 8 October 2024 GBPUSDThe Pound-Dollar pair attracted some buying during the Asian session on Tuesday and so far seems to have broken a five-day losing streak, hitting a near four-week low near 1.31600 reached the previous day. However, spot prices are unable to consolidate above the 1.31000 mark, causing bullish traders to be somewhat cautious. Investors remain concerned that tensions in the Middle East could escalate into a larger conflict. In addition, not-so-optimistic comments from the National Development and Reform Commission (NDRC) overshadowed the recent optimism from China's stimulus measures and curbed investors' appetite for risky assets. This is evidenced by the overall weak tone in equity markets, which in turn could help drive inflows into the US Dollar and constrain the GBP/USD pairing. Meanwhile, Bank of England (BoE) Governor Andrew Bailey said last week that there is a possibility that the central bank could become more aggressive in cutting rates if there is further good news on inflation. This could help limit British Pound (GBP) gains and suggests that the path of least resistance for the GBP/USD pair lies to the downside. As such, any further upward movement could be seen as a selling opportunity and risks quickly coming to naught. On Tuesday, no market-important economic data will be released from either the UK or the US, so the dollar and the GBP/USD pair will depend on the Fed's words. Meanwhile, attention will be focused on the release of the FOMC meeting minutes on Wednesday. It will be followed by data on the Consumer Price Index (CPI) and Producer Price Index (PPI) in the US, which will play a key role in stimulating demand for the dollar and will give a new impetus to the currency pair. Trading recommendation: Watch the level of 1.31000, when fixing above it consider Buy positions, when rebounding we consider Sell positions.
by Fresh-Forexcast2004
GBP/USD Bearish weakening, potential buys from 1.30500This week looks promising for my type of setups, with both sell and buy opportunities presenting decent prospects. I’ll be waiting for high-quality lower time frame confirmations before taking any trades. Depending on which point of interest (POI) gets hit, I’ll adjust, but ideally, I’m looking to sell from the supply zone down toward the demand zone. Once price reaches the 15-hour demand zone, I’ll shift to looking for buy opportunities, targeting the imbalances above and the untouched Asian session highs. Although the overall trend is bearish and sells look favorable, I plan to wait for a mitigation of the higher supply zones around 1.32500 before committing to any shorts. Confluences for GU Buys: - The refined 15-hour demand zone has caused a CHOCH to the upside. - There are significant imbalances and liquidity above that need to be filled. - For price to retrace to the supply zone, it must first move upward. - The US Dollar Index (DXY) is sitting in a strong supply zone, which could trigger a drop in the dollar, supporting bullish momentum for GU. Note: If the buy scenario doesn’t play out as planned, I’ll wait for a strong supply zone to sell from and continue the bearish trend. However, given that price is already in a higher time frame demand zone, I wouldn’t be surprised to see an upward push as early as Monday.
Long
by Hassan_fx
Fundamental Market Analysis for October 2, 2024 GBPUSDGBPUSD: The GBP/USD pair remains weak after losses recorded in the previous session, trading near 1.32800 during Asian hours on Wednesday. The decline could be attributed to risk aversion due to rising geopolitical tensions in the Middle East, which is undermining the risk-sensitive Pound Sterling (GBP) and the GBP/USD pair. Iran launched more than 200 ballistic missiles at Israel on Tuesday, shortly after the US warned a strike was imminent. The Israel Defense Forces said several missiles were intercepted and one person was killed in the West Bank, according to Bloomberg. Israeli Prime Minister Benjamin Netanyahu vowed to retaliate against Iran after Tuesday's missile attack. In response, Tehran warned that any retaliatory strike would cause “immense destruction”, raising fears of the possibility of a wider conflict. The US Dollar (USD) is receiving support from the latest speech from Federal Reserve (Fed) Chairman Jerome Powell. Powell stated that the central bank will cut interest rates gradually over time. Fed Chairman Powell added that the recent half-point interest rate cut should not be seen as a sign of similarly aggressive action in the future, noting that upcoming rate changes are likely to be more modest. On Tuesday, Bank of England (BoE) Governor Megan Green warned that a recovery in United Kingdom (UK) consumption could trigger a new wave of inflation. However, Green noted that further interest rate cuts are likely as prices are “moving in the right direction,” Bloomberg reported. Trading recommendation: Watch the level of 1.33000, if it is fixed above consider Buy positions, if it rebounds consider Sell positions.
by Fresh-Forexcast2004
GBP/USD Longs to Shorts. Bullish pressure weakens...I expect price to push a bit higher to reach the weekly supply zone above. However, since price hasn’t fully broken structure and has instead swept liquidity at the Asian session high before dropping back down, this weakens the validity of the 7-hour demand zone I previously marked. Given the failure to break structure to the upside, I wouldn't be surprised if price starts to decline. I’ll be watching for it to reach the 6-hour demand zone around 1.32000, where I’ll look for new buy opportunities. Confluences for GU Longs: - Price has left a clean 7-hour demand zone, which could trigger a bullish reaction. - The overall higher time frame trend is bullish, making this a pro-trend idea. - There’s significant liquidity to the upside, along with an unmitigated weekly supply zone. - The US Dollar Index (DXY) remains bearish, aligning with the bullish outlook for GBP/USD. Note: If price reaches the supply zone above, I'll also be looking for a potential reversal, which could present a strong sell opportunity. With NFP (Non-Farm Payroll) this week, be on the lookout for any significant moves.
Long
by Hassan_fx
GBP/USD Longs from1.32000 back up This week's analysis for GBP/USD (GU) focuses on a potential retracement back to the 6-hour demand zone I've identified. Currently, the price is at one of my points of interest (POI) from last week, and we're already seeing signs of rejection. This suggests that the price may start moving downward from its current level. We’ll wait for mitigation at the demand zone before considering long positions again. However, if the price breaks through the supply zone and continues upward, there's an unmitigated weekly supply zone that could trigger a reversal. We'll have to monitor this, but for now, I’m aligned with the current bullish trend and hope to see a retracement, providing an optimal entry for buys. Key confluences for a potential GU buy: - The price has broken significant structure to the upside, indicating a desire to continue upward. - There’s a clean, unmitigated 6-hour demand zone, my main point of interest for potential long opportunities. - This analysis is in line with the prevailing bullish trend we're observing. - The dollar is showing bearish tendencies, which further supports a bullish outlook for GU. P.S. If the price suddenly drops and breaks through the demand zone, we can expect a major reaction at that level.
Long
by Hassan_fx
GBPUSD: Momentum Waning - Mid-Level Test Expected Soon!A bit late to this one, but if the price moves back above the breakdown area, I’ll consider taking a short position. There’s significant weakness against the dollar in most pairs. This could be short-lived, but it looks like this one might be rolling over for good, at least down to the mid-level. A conservative target is 1.2950. If things go as expected, we could comfortably trade in the 1.27 range within the next week or two.
Short
by ZelfTrade
GBP/USD Sell to buy idea from 1.32000 to 1.30400GU Analysis for This Week: My outlook on GU this week largely depends on how the market opens. If the price moves downward and breaks structure by taking out the liquidity at the swing low, I expect a retracement to the 12-hour demand zone. In this scenario, the 10-hour supply zone I marked would become more valid, although there is also a possibility that price could move there first. This would lead to an initial sell-off, to ride the price down until it fills the imbalance just above the demand zone. Once price reaches this point, it would fill a level of imbalance, potentially triggering stronger buying pressure. Confluences for GU Sells: - The price has been forming lower lows and lower highs. - There is an imbalance below that needs to be filled, along with a demand level. - A 10-hour demand zone was left untouched by the NFP news event. - There is significant liquidity below, providing clear target levels for take profit. - This analysis aligns well with the dollar index (DXY) chart. Note: If the price invalidates the current supply, my ideal scenario would be for the price to reach the 11-hour supply zone at the very top, as it offers a more premium level to sell from. Have a great trading week, everyone!
Short
by Hassan_fx