I had recently became aware that across the board the GBP currency dominant pairs had seen a sharp, heavy seller interest across the board. When we see correlation in the market it shows us that there is interest globally in that specific currency and in this case its displaying interest in a short for the GBP. I had seen that overall this pair had been in a downtrend and then when I had looked at the weekly time frame graph I had seen the huge wick to the upside displaying that the buyers tried taking price to the upside but were very aggressive shut down by the sellers, showing me who is in true control at the moment. Remember trading is all about probability so you always want to let the market show you what it wants to do rather than you trying to tell the market, trust me it makes a huge difference. So here is my analysis on GBPUSD .
* on this timeframe you can see how price tried coming up to the 1.3300 price handle but had been smashed down by the seller
*the candle had shown the attempt by the buyers and very strong rejection by the sellers
*On this timeframe you can see that the buyers had tried creating a new high and was suddenly followed by very strong push by the seller
*the overwhelmingly strong seller strength bias on the daily is showing me that the seller is very interested in taking price lower against the USD
* look for a weak re-test by the buyers, to get better price and to confirm that the seller is in control
*use this timeframe for more specifics on the pullback and look for strong seller interest back in the structure levels around 1.31500 handle
*use this timeframe for good risk/reward setup trade entry as well
Always make sure you allow the market to show you what it wants to do. Not the other way around. It allows you to stay in the flow of the market movement and allows you to keep an open perspective on where the market is heading next, without what we believe. At the end of the day it doesn't matter what we think, we aren't what moves the market, let the market (big boy) tell US what it wants!
Keep an eye on this pair! Cheers!
p.s. please like and follow me on TradingView for more trade setups!!
proper risk is implemented.