**GBP/USD ANALYSIS**
***Structure*** Price was stuck in a consolidation area for quite sometime, a couple of days ago, it broke the area to the downside with an impulsive movement, generally this is to be considered a bearish scenario, where a new downward structure is created once the lows are broken, and I would agree with that! But we are missing an essential piece of the puzzle to consider this a new bearish structure forming.
***Liquidity*** Before creating the impulsive move to the downside, price DID NOT take the liquidity resting behind the multiple highs created during the consolidation area. Before a proper reversal, price MUST get the necessary liquidity to fuel to move.
In this case it did not, living behind multiple important levels, that now, more then ever, are full of orders considering the latest bearish inducement.
***Demand*** One of the pattern I like the most is the Demand/Supply after liquidity, where we have an important zone of reversal such as the demand zone in the gray box in the picture, and we have multiple levels of liquidity right above the level that get taken out.
This pattern has an extremely high win rate with a great risk to reward.
***Positioning*** The best price, as of now, to enter a long position, would be at the close of the inefficiency left behind at 1.25735, in case you place a buy limit, without waiting for confirmation on a lower time frame, the stop loss should go behind the demand zone 1.24989.
Waiting for a confirmation would mean checking out the 15 minutes chart and waiting for a bullish break of structure after liquidity grab, for then placing the stop loss below the lower low.
***Targets*** I would suggest to keep 2 targets, a 1:3 Risk to reward, close partials and move to breakeven once it reaches that point, you can Definitely leave the rest running to test the highs and of course take out the trendline of liquidity.
***Structure*** Price was stuck in a consolidation area for quite sometime, a couple of days ago, it broke the area to the downside with an impulsive movement, generally this is to be considered a bearish scenario, where a new downward structure is created once the lows are broken, and I would agree with that! But we are missing an essential piece of the puzzle to consider this a new bearish structure forming.
***Liquidity*** Before creating the impulsive move to the downside, price DID NOT take the liquidity resting behind the multiple highs created during the consolidation area. Before a proper reversal, price MUST get the necessary liquidity to fuel to move.
In this case it did not, living behind multiple important levels, that now, more then ever, are full of orders considering the latest bearish inducement.
***Demand*** One of the pattern I like the most is the Demand/Supply after liquidity, where we have an important zone of reversal such as the demand zone in the gray box in the picture, and we have multiple levels of liquidity right above the level that get taken out.
This pattern has an extremely high win rate with a great risk to reward.
***Positioning*** The best price, as of now, to enter a long position, would be at the close of the inefficiency left behind at 1.25735, in case you place a buy limit, without waiting for confirmation on a lower time frame, the stop loss should go behind the demand zone 1.24989.
Waiting for a confirmation would mean checking out the 15 minutes chart and waiting for a bullish break of structure after liquidity grab, for then placing the stop loss below the lower low.
***Targets*** I would suggest to keep 2 targets, a 1:3 Risk to reward, close partials and move to breakeven once it reaches that point, you can Definitely leave the rest running to test the highs and of course take out the trendline of liquidity.