This week, my plan for GBPUSD (GU) is to buy up towards the 10-hour supply zone. I will wait for a retracement to occur, allowing for a Wyckoff accumulation to form within the demand zone before taking buys, possibly targeting the relative equal highs I have marked.
If the price doesn’t retrace deeply and moves straight towards the supply zone, I will look for a Wyckoff distribution to initiate sells. This supply zone is more promising as it's a refined version of the 21-hour zone I marked last week.
Confluences for GU Buys are as follows:
- Price has left a clean 8hr demand zone that has swept liquidity.
- Price has been bullish and this idea is a pro-trend idea.
- There is lots of liquidity to target in the form of equal high and Asian high.
- There is still an unmitigated supply that needs to get mitigated as well.
P.S. If the price doesn't respect the demand zone, it could drop lower due to the imbalance below. In that case, I would look for a deeper demand zone to buy from or wait for the price to change character (CHOCH) to the downside.
If the price doesn’t retrace deeply and moves straight towards the supply zone, I will look for a Wyckoff distribution to initiate sells. This supply zone is more promising as it's a refined version of the 21-hour zone I marked last week.
Confluences for GU Buys are as follows:
- Price has left a clean 8hr demand zone that has swept liquidity.
- Price has been bullish and this idea is a pro-trend idea.
- There is lots of liquidity to target in the form of equal high and Asian high.
- There is still an unmitigated supply that needs to get mitigated as well.
P.S. If the price doesn't respect the demand zone, it could drop lower due to the imbalance below. In that case, I would look for a deeper demand zone to buy from or wait for the price to change character (CHOCH) to the downside.