GBP/USD Sells down towards a long opportunity

OANDA:GBPUSD   British Pound / U.S. Dollar
This pair is currently in a bearish trend, but I anticipate a potential reversal near a major demand zone around 1.23000. While we wait for price to reach this level, I'll be monitoring for a minor retracement back to the recently formed 4-hour supply zone.

Once the retracement occurs, I'll be looking for selling opportunities in line with the prevailing trend until price reaches the 3hr demand level. Upon reaching this level, I'll anticipate a liquidity sweep of the Asian low and a possible Wyckoff accumulation phase, expecting price to then rise.

Confluences for GU Sells are as follows:

- Price has been very bearish recently and confirms this via continuous break of structures.

- Good 4hr supply that has recently been created which also caused a BOS.

- Theres an imbalance below that needs to get filled as well as lots of liquidity to be taken.

- The overall trend of the market on the higher time frame is bearish as well.

- DXY also looking bullish as well and it's aligning very well with GU's Zones.

P.S. This demand zone is particularly strong because it aligns with a strengthening dollar entering a robust supply zone. This could lead to a significant drop in the dollar and consequently a rise in GU. However, given the overall bearish trend of GU, selling positions remain valid.

Have a good trading week!


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