Ideas For GBP/USD for the upcoming week.
The Bulls are over! Time to pull-back.
For the upcoming week, expect a pull back, taking out leftover liquidity and imbalances.
(white horizontal rays are major levels where price might reverse from).
Since we are in a bullish trend on the higher timeframe, expect this pull back not to last very long. Make the most of it whilst you can.
The benefit of it is: its a good opportunity to take trades against the trend. Especially at such a high level, looking for shorts and having an overall bearish bias for most days.
The disadvantages of trading against the trend (according to me):
1. higher chances of having your short position stop loss getting swept.
2. out of the blue reversal. At anytime, the market can reverse back up to continue doing its thing.
And thats why we have to be careful trading against the trend.
Extra Notes:
Its known that in bull trends, highs will be taken out after the pull back, and usually the purpose of that pull back is to sweep out leftover liquidity and imbalances from the previous impulsive move. And here is no diffrent. So, when we flip back bullish on our internal trend, or you can call it the lower timeframe trend (which is currently bearish, because we are pulling-back on the higher timeframe bullish trend), the chances that we take out the higher timeframe trend high (sitting at 1.32666) are higher than 50%. So Keep that in mind.
Also: Even when we take out the high, its also Very very likely that we continue pushing higher, so dont be afraid that you missed the move, as long as it is making higher highs everyday, look to long, not short.
"It will keep going higher until it doesnt" -by me
What does that mean? Its not complicated, it will keep putting in higher highs untill we stop putting them. When can we have the best chances of knowing that the bullishness is over and we are about to experience the start of a fresh pull back? Here are some tips from me:
1. Time. Time is very important. In this scenario, after pumping up for an entire week beyond the high. we can expect that when the next week or month starts, the plans might shift. Of course its not enough by itself but its definitely something!
2. A shift in trend. That is, the internal trend or the lower timeframe trend. Like we said before, a shift in internal trend can tell us many things:
a) HTF bull trend, LTF bear trend -> HTF pull back
b) HTF bull trend, LTF bull trend -> Realignment, likely to take out the HTF high.
So, when we finally flip bearish on the lower timeframe, we can have a suspicion that we might start pulling back, especially when followed by lower highs and even lower pushes, such as the live example shown in the screenshot.
3. A combination of the both.
Hope this helps! Feel free to share or let me know your thoughs!
For the upcoming week, expect a pull back, taking out leftover liquidity and imbalances.
(white horizontal rays are major levels where price might reverse from).
Since we are in a bullish trend on the higher timeframe, expect this pull back not to last very long. Make the most of it whilst you can.
The benefit of it is: its a good opportunity to take trades against the trend. Especially at such a high level, looking for shorts and having an overall bearish bias for most days.
The disadvantages of trading against the trend (according to me):
1. higher chances of having your short position stop loss getting swept.
2. out of the blue reversal. At anytime, the market can reverse back up to continue doing its thing.
And thats why we have to be careful trading against the trend.
Extra Notes:
Its known that in bull trends, highs will be taken out after the pull back, and usually the purpose of that pull back is to sweep out leftover liquidity and imbalances from the previous impulsive move. And here is no diffrent. So, when we flip back bullish on our internal trend, or you can call it the lower timeframe trend (which is currently bearish, because we are pulling-back on the higher timeframe bullish trend), the chances that we take out the higher timeframe trend high (sitting at 1.32666) are higher than 50%. So Keep that in mind.
Also: Even when we take out the high, its also Very very likely that we continue pushing higher, so dont be afraid that you missed the move, as long as it is making higher highs everyday, look to long, not short.
"It will keep going higher until it doesnt" -by me
What does that mean? Its not complicated, it will keep putting in higher highs untill we stop putting them. When can we have the best chances of knowing that the bullishness is over and we are about to experience the start of a fresh pull back? Here are some tips from me:
1. Time. Time is very important. In this scenario, after pumping up for an entire week beyond the high. we can expect that when the next week or month starts, the plans might shift. Of course its not enough by itself but its definitely something!
2. A shift in trend. That is, the internal trend or the lower timeframe trend. Like we said before, a shift in internal trend can tell us many things:
a) HTF bull trend, LTF bear trend -> HTF pull back
b) HTF bull trend, LTF bull trend -> Realignment, likely to take out the HTF high.
So, when we finally flip bearish on the lower timeframe, we can have a suspicion that we might start pulling back, especially when followed by lower highs and even lower pushes, such as the live example shown in the screenshot.
3. A combination of the both.
Hope this helps! Feel free to share or let me know your thoughs!
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