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GU Compression To Supply

by Gil B, February 1, 2021

GBP/USD D1 Supply And Demand, Price Action, Fundamental

by Gil Ben Hur February 1, 2021

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GBP/USD

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Short

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D1

Timeframe:

D1

Analysis Method:

Supply And Demand, Price Action, Fundamental

Analysis:

Cable is approaching by a compressed (consuming demand) to a Supply zone. At this level we find a fundamental and price action confluence, where the USD is devaluating by massive printing, and price action is perfect to expect a deep reaction to supply.

Although this supply is mid range, it also located at daily SR (support/resistance level).

Trade Plan:

Waiting for a confirmation price action as long the zone is not broken. A H1 or M15 Quasimodo pattern will allow shorting for a as low as to 1.28.

Things To Watch For:

Pay attention for the fact this supply is already being tested in the past couple weeks. Wait for a intraday confirmation PA (price action) to get your shot in, and keep risk as low as possible.

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