EURGBP (4H) – Swing Trade Trading Plan

This trading plan is designed to capture a potential medium-term downward move (swing trade) on the EUR/GBP pair, utilizing Smart Money Concepts to identify high-probability areas for entering a short position.

Market Context and Bias:
The current price shows a reversal or correction from a previous upward move and is approaching a key supply area on the 4-hour timeframe (H4), signaling strong potential resistance. Your trading bias is "Short," aligned with the expectation that price will be rejected at this supply area and continue downward.

Key Zones (Critical Areas):

H4 Supply Zone (Red Area): This is a crucial area where institutional players are expected to enter with short positions, generating strong selling pressure. This zone is highlighted in red and is the primary focus for entries. Place your pending short orders within or near this area, as indicated on your chart.

Fair Value Gap (FVG) / Imbalance: There is a Fair Value Gap within or near the supply zone that acts as a price magnet, potentially pulling price back to fill the imbalance before continuing downwards.

Order Block / Last Kiss: The lower part of the supply zone often contains an Order Block or "last kiss," which represents the final pullback before a significant move, making it a precise entry or pending order level for shorts.

Market Structure & Confirmation:

Break of Structure (BOS): Watch for bearish BOS on lower timeframes as price nears or reacts to the supply zone. This provides an additional confirmation for short entry.

Liquidity Grab: Look for a liquidity sweep above the recent swing highs around the supply zone. This is often an indication that Smart Money is clearing stops before pushing price lower.

Execution Plan (Pending Short):

Entry: Place pending short orders (sell limit) within or just below the H4 Supply Zone. Consider scaling into the position if you prefer to average the entries within the zone.

Stop Loss: Place your stop loss safely above the H4 Supply Zone and above the recent swing highs (or the "weak high" as labeled on the chart) to protect your capital in case the supply area breaks.

Take Profit: Target previous swing lows, Order Blocks below, and unfilled Fair Value Gaps as profit-taking areas. A large reward ratio is ideal for swing trading, aiming for FVG or Order Block targets lower down as shown on your chart.

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