Dear Colibri-lings,

Last time, I covered the GBPUSD, I was expecting for the price to reach to this supply zone.

You can read the article on GBPUSD here.

As fate would have it, the price has already reached this zone.

The question now is: what can we expect next?

As it stands, there are still a couple of scenarios I’ve kept open for further analysis.

Based on the current setup, I see two possible outcomes for GBPUSD.

Two Possible GBPUSD Trading Scenarios

As you’ve probably gathered from the chart above, GBPUSD could go one of two ways — up or down.

Nothing unusual here.

What would make a difference though is the way this happens.

And here is how I see it unfolding.

Scenario 1- GBPUSD reversing

Here is what I imagine this would look like

In this scenario, I will be looking for a candlestick rejection in the upper part of the supply zone.

This would give me a good indication that the willingness of the buyers to continue buying is diminishing.

So, the only way from here would be down

Scenario 2- GBPUSD breakout

Here is how I see a bullish GBPUSD breakout enfolding:

Here, I’ll be watching for the price to break above the zone, then retest it from above while forming a confirmation candlestick pattern.

This will be a great sign that the buyers are still in control and ready to push the price higher.

GBPUSD Wrap Up

In the end, what will truly impact our results is the patience we show in navigating either scenario.

So, be patient and wait for all the stars to align before deciding.

It is important to be ready to complete your analysis with a multitimeframe analysis and reduce the risk by finding a good entry point from the lower timeframe.

If you are unsure how we do that, feel free to reach out directly to me.

I still have a few available slots HERE.

Happy trading,

Atanas

P.S. Don’t forget, you are just one trade away!