GBPUSD Market Review - 06/09/2023
Looking at the daily timeframe, it was clear that the GBPUSD pair had a bearish bias. In light of this, our focus was on potential selling opportunities, and we identified two key areas for consideration:
1. The breaker area, which typically coincides with the 50% Fibonacci level (indicating equilibrium).
2. The order block area, often found at the extremes.
Yesterday, during the London session, we witnessed an impulsive breakout, leading to the creation of a breaker area where price could retrace before the next impulse move. Price retraced around 4 PM GMT, but the timing was not ideal, so we patiently waited for today's London session for more favorable price action.
At the London open today, price once again retraced back to the breaker area, where we had also pinpointed a 15-minute order block aligning with the same zone. We exercised patience, waiting for a clear bearish signal to confirm our selling position. This confirmation came in the form of a significant downward move, corresponding to a bearish engulfing candle on the 1-hour timeframe.
We waited for price to retrace and fill the newly created imbalances before executing our sell orders. The result? Price eventually moved approximately 90 pips, particularly following the release of US PMI data during the New York session at 2 PM GMT.
Thanks for taking the time to read through this analysis. Happy trading!
1. The breaker area, which typically coincides with the 50% Fibonacci level (indicating equilibrium).
2. The order block area, often found at the extremes.
Yesterday, during the London session, we witnessed an impulsive breakout, leading to the creation of a breaker area where price could retrace before the next impulse move. Price retraced around 4 PM GMT, but the timing was not ideal, so we patiently waited for today's London session for more favorable price action.
At the London open today, price once again retraced back to the breaker area, where we had also pinpointed a 15-minute order block aligning with the same zone. We exercised patience, waiting for a clear bearish signal to confirm our selling position. This confirmation came in the form of a significant downward move, corresponding to a bearish engulfing candle on the 1-hour timeframe.
We waited for price to retrace and fill the newly created imbalances before executing our sell orders. The result? Price eventually moved approximately 90 pips, particularly following the release of US PMI data during the New York session at 2 PM GMT.
Thanks for taking the time to read through this analysis. Happy trading!
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