SCENARIO 1 - My current bias for GBPUSD is to buy roughly were current price is at (9hr demand) but could expect a bit more downside and mitigate the 7hr demand zone for the buy setup to take place. Regardless we are expecting a wyckoff accumulation to take place in this POI. Targeting 1.22500 were the 8hr supply zone is located, we will then look for price to slow down momentum and distribute for a potential sell setup to form in either the 8hr or the 10hr supply zones.
My confluences for the buys are as follows:
- Price has tapped into a 9hr demand zone that has caused a change of character to the upside.
- There's lots of imbalances left from the downwards push we had today so we are expecting that to get filled in.
- Liquidity that was lying underneath the consolidation has also been swept hence why we are starting to see higher highs and higher lows.
- Also for price to continue going down in a bearish trend overall I would be expecting for price to mitigate the 1.22500 level in order to continue going down.
- wyckoff accumulation is starting to unravel as price was slowing down whilst entering the zone (good sign, as the rejection indicates price wants to go back up.)
P.S. If price decides to push higher than our two supply zones and sweeps the liquidity at 1.23400 it will form a break of structure on the higher time frame indicating the trend will officially be bullish temporarily.
My confluences for the buys are as follows:
- Price has tapped into a 9hr demand zone that has caused a change of character to the upside.
- There's lots of imbalances left from the downwards push we had today so we are expecting that to get filled in.
- Liquidity that was lying underneath the consolidation has also been swept hence why we are starting to see higher highs and higher lows.
- Also for price to continue going down in a bearish trend overall I would be expecting for price to mitigate the 1.22500 level in order to continue going down.
- wyckoff accumulation is starting to unravel as price was slowing down whilst entering the zone (good sign, as the rejection indicates price wants to go back up.)
P.S. If price decides to push higher than our two supply zones and sweeps the liquidity at 1.23400 it will form a break of structure on the higher time frame indicating the trend will officially be bullish temporarily.