FX.co ★ LaibaBatool | GBP/USD

Technical Market Context The chart illustrates a clear bearish trend dominated by institutional order flow. This is evidenced by a series of lower highs and lower lows, accompanied by specific Price Action (PA) markers such as MSS (Market Structure Shift) and BOS (Break of Structure). The initial phase shows a Market Structure Shift (MSS) around the 1.35500 level, where price failed to maintain its bullish momentum and shifted toward a sell-side delivery. Following this shift, the pair experienced a significant Break of Structure (BOS) at approximately 1.35200. This confirms that the bears are firmly in control, as the previous swing lows failed to hold, leading to an aggressive expansion lower. Price Action Observations * Order Blocks and Supply Zones: There is a prominent supply zone (marked in red) near the top of the chart around 1.35700 – 1.35800. This area acted as the origin of the primary bearish move. A secondary supply zone has formed near 1.34950, which is currently being tested. * Liquidity Gaps: The sharp red "displacement" candles visible between 15:00 and 18:00 indicate a massive imbalance or Fair Value Gap (FVG). Price often returns to these areas to "rebalance" before continuing the trend. * Support-Turned-Resistance: The level near 1.35000 (a psychological round number) was previously a structural support. After the BOS, price has pulled back to this level from below, effectively flipping it into a resistance zone. * Volume Profile: The volume bars at the bottom show significant spikes during the downward expansion, suggesting high-conviction selling. The current consolidation at 1.34888 is seeing lower volume, typical of a "corrective" or "flagging" phase before the next leg. Strategic Trade Setup Given the dominant bearish structure on the 15-minute chart, the highest probability trades are those aligned with the downtrend. The Bearish Continuation (Sell Setup) * Entry Point: Look for a short entry in the current 1.34900 – 1.35000 resistance cluster. Ideally, wait for a bearish rejection candle (like a pin bar or engulfing candle) on a lower timeframe within this red shaded zone. * Stop Loss (SL): Place the SL above the most recent swing high or the top of the supply zone, roughly at 1.35150. This protects the trade against a deeper retracement. * Take Profit (TP): The first target would be the recent swing low near 1.34600. A secondary, more ambitious target would be the lower demand zone or "liquidity pool" visible at the far left of the chart's historical price action. The Mean Reversion (Contrarian Buy Setup) * Conditions: This is a higher-risk play. A buy should only be considered if price creates a "Double Bottom" at 1.34600 or shows a strong MSS to the upside with high-volume displacement. * Target: The target for a scalp buy would be a return to the 1.35200 BOS level. Conclusion The GBP/USD pair is currently in a "Sell the Rip" environment. The price has successfully broken major structural supports and is currently retesting the 1.34900 level as resistance. As long as the price remains below the 1.35200 mark, the bias remains strictly bearish. Traders should prioritize short positions, targeting a sweep of the 1.34600 liquidity.