GBP/USD Longs to Shorts

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GU has been very bearish recently and is currently reacting from a clean demand zone with multiple confluences. While we may see a short-term push to the upside, I’ll be watching to see if price reaches the 3hr supply zone sitting at a premium level.

If price does reach that zone, I’ll be on the lookout for signs of Wyckoff distribution and a slowdown in momentum, which could signal the start of another bearish leg.

Confluences for GU Shorts:

Overall bearish trend remains intact — this is a pro-trend setup

Price may retrace to mitigate a 3hr supply zone

Liquidity to the downside still needs to be taken

Current demand zone may simply serve as a trigger for a retracement up to supply

P.S. If price fails to reach the supply zone and continues dropping, we’ll likely see a new break of structure and the formation of a fresh nearby supply zone, which we can then trade from.

Let’s stay sharp and have a profitable trading week ahead! 🔥📊💰

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