📊 GBP/USD 4H Analysis – Smart Money Structure in Play
On the 4-hour chart, GBP/USD has been exhibiting a clear bullish structure following a series of Breaks of Structure (BOS) and higher lows. Here’s a breakdown of my analysis and current trade idea:
1. Market Structure
We saw a clear BOS around June 20, indicating a shift in direction as price broke above previous swing highs.
A second BOS occurred shortly after, confirming bullish intent with strong momentum candles.
This was followed by a minor retracement and another bullish rally — forming a higher low supported by a Short-Term Support (SS).
2. Fair Value Gap (FVG)
During the bullish impulse, an FVG was left behind between the BOS levels and the rally base.
Price respected this FVG zone as a demand imbalance and pushed higher, reinforcing the presence of institutional interest.
3. Supply Rejection & Entry
Price has recently tapped into a minor supply area (highlighted by the red zone) and showed early signs of rejection via bearish candles.
This coincides with a premium pricing area in the current bullish leg, providing a potential short-term sell opportunity targeting liquidity below.
4. Demand Zone Below
The next major Demand Zone lies between 1.33900 – 1.34600 (highlighted on the chart).
This area aligns with a previous SS and the origin of the bullish BOS, suggesting a high-probability reversal zone if price retraces that far.
🎯 Trade Idea
Bias: Short-term bearish into a higher timeframe bullish continuation.
Entry: Taken at 1.37449 (reaction to supply).
Stop Loss: Above supply zone – around 1.37628.
Take Profit: Just above the demand zone at 1.35993, locking in profit before potential reversal.
Risk-to-Reward: Approx. 1:5
Final Thoughts
This trade idea aligns with a smart money framework — BOS confirms directional intent, FVG and SS show institutional footprints, and the supply zone gives a clean entry.
If price aggressively taps into the demand zone and shows bullish confirmation (engulfing, BOS, or FVG fill), I’ll look to flip long for a continuation of the larger uptrend.
On the 4-hour chart, GBP/USD has been exhibiting a clear bullish structure following a series of Breaks of Structure (BOS) and higher lows. Here’s a breakdown of my analysis and current trade idea:
1. Market Structure
We saw a clear BOS around June 20, indicating a shift in direction as price broke above previous swing highs.
A second BOS occurred shortly after, confirming bullish intent with strong momentum candles.
This was followed by a minor retracement and another bullish rally — forming a higher low supported by a Short-Term Support (SS).
2. Fair Value Gap (FVG)
During the bullish impulse, an FVG was left behind between the BOS levels and the rally base.
Price respected this FVG zone as a demand imbalance and pushed higher, reinforcing the presence of institutional interest.
3. Supply Rejection & Entry
Price has recently tapped into a minor supply area (highlighted by the red zone) and showed early signs of rejection via bearish candles.
This coincides with a premium pricing area in the current bullish leg, providing a potential short-term sell opportunity targeting liquidity below.
4. Demand Zone Below
The next major Demand Zone lies between 1.33900 – 1.34600 (highlighted on the chart).
This area aligns with a previous SS and the origin of the bullish BOS, suggesting a high-probability reversal zone if price retraces that far.
🎯 Trade Idea
Bias: Short-term bearish into a higher timeframe bullish continuation.
Entry: Taken at 1.37449 (reaction to supply).
Stop Loss: Above supply zone – around 1.37628.
Take Profit: Just above the demand zone at 1.35993, locking in profit before potential reversal.
Risk-to-Reward: Approx. 1:5
Final Thoughts
This trade idea aligns with a smart money framework — BOS confirms directional intent, FVG and SS show institutional footprints, and the supply zone gives a clean entry.
If price aggressively taps into the demand zone and shows bullish confirmation (engulfing, BOS, or FVG fill), I’ll look to flip long for a continuation of the larger uptrend.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.