LupaCapital

GBP USD - October update - Heavy sells, but what next?

Short
FX:GBPUSD   British Pound / U.S. Dollar
Hello Traders and Analysts,

A Note before reading - this is a technical breakdown analysis - based upon our trading strategy. This is tagged short, due to selling further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.

Breakdown
1. Note
2. Contents
3. Research breakdown
4. Education recap
5. Information on Lupa.

Master Key for zones
Blue = Monthly
Purple = weekly
Red = 4 Days
Yellow = 16 Hours
Orange = Daily
Dark Green = 8 Hour
Grey = 4hour
Pink = 1 hour



Previous Analysis

Chart pattern - Symmetrical triangle

Monthly Imbalance
Below are the monthly imbalances
Firstly using the monthly timeframe , this has provided two key zones of interests for long positions.
(i) the huge sell off from the US Dollar back in March 2020 provided a key buying imbalance, this had affected the correlation between other pairs against the USD, for example - AUD,NZD,EUR, etc. the swing low formation hit 1.1394X with a sharp whipsaw effect on the monthly timeframe .

(ii) the price reverted back to the original imbalance - to the zone including the psychological 1.40mark.
These established zones are prominent on the chart for two key reasons;
i. price always retests imbalances
ii. where the monthly chart is showing pressure against the GBP creating a lower low pattern through the chart structure historically.

The structure Indicates all in a clear move.

Profit zones in terms of adding the red dotted line, indicates where measured sells will be closed out.

Two Day Volume profile
Here lies behind the chart candles, the volume data, which points to a selling opportunity whereby the highest peak of volume looks to the reaction point upon the entry zone surrounding 1.394XX showing the reactive level at this level which equates to 50% Fibonacci Retracement . Shows the clear jostle at a daily imbalance level.

See further for an isolated chart

Here is the latest trades taken.
Using the hour timeframe
 

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