Bearish Move After CHoCH – Targeting Discount Zone"

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This is a GBP/USD (British Pound / U.S. Dollar) forex trading chart on the 1-hour timeframe, published on TradingView. Let’s break down and describe its key elements:


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🕒 Timeframe & Pair

Currency Pair: GBP/USD

Timeframe: 1-hour (each candlestick = 1 hour)

Date & Time: July 22, 2025, 06:12 UTC



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📉 Price Action

Current Price: ~1.34690

The price has recently moved from a premium zone (upper part of the range) and is heading downward.

The red candle at the top shows bearish momentum starting to form after a rally.



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🔁 Market Structure Labels

CHoCH = Change of Character

Signals a possible reversal or shift in trend (e.g., from bearish to bullish or vice versa).

Several CHoCH points are marked throughout the chart, indicating key shifts.


BOS = Break of Structure

Indicates a significant breach of previous market structure (e.g., support/resistance).

Suggests a trend continuation or momentum confirmation.




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⚖️ Zones

Premium Zone (Top shaded region):

Price considered overvalued, typically a good area for potential short (sell) positions.


Discount Zone (Bottom shaded region):

Price considered undervalued, potential area for buys.


Equilibrium (Middle horizontal level):

Represents fair value or a midpoint between premium and discount zones.

The price is expected to return here before potentially continuing lower.




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⬇️ Projected Movement

A downward arrow is drawn from the current price, suggesting:

The analyst expects a pullback to the equilibrium level.

Followed by a further decline into the discount zone around 1.34200 or lower.




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🇺🇸 News/Event Icon

U.S. flag icon near the expected price drop indicates a potential economic news release or event from the U.S. that could influence the price movement.


Disclaimer

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