Price action recently reacted off a weekly supply zone once more and formed a daily supply zone as a result. With volatility (VIX) picking up ahead of CPI later in the day, there could be a possible short entry. As such, I will be looking for a 1H trend line to get broken leading into the NY session to execute a short trade (depending on whether the counter trend...
I thought I had missed the opportunity to enter a short position on GU yesterday because of the volatility but thanks to today's pullback I was able to enter the trade.
I have set a 120 pip SL, with a 300 TP (1:2.5 risk:reward). If things go according to plan I will look to trail the position instead.
The GBPUSD is reacting off from a weekly supply zone. With price action testing the open-low of the previous bullish candle, orange box, a daily candle close below this box could result in a potential short setup.
Looking at VIX - charted with black and white candle sticks - it suggests that the risk sentiment may have temporarily shifted from risk-off to risk-on. This change in the risk tone can be translated as a signal for traders to be prepared for a double-bottom setup following a yet to be confirmed second leg that will be a potential point of entry.
