fbpx

GBPUSD Forex analysis long-term bullish reversal

GBPUSD Forex cross-pair started the reversal after breaking the historical all-time low last September 2022. As expected and mentioned at Set and Forget’s online trading academy, the British pound strengthened against the US Dollar. The fact that the dollar index analysis is also very bearish is helping the pound in a double correlation to move to higher grounds, as you will see in the Forex analysis shared below.

The GBPUSD weekly timeframe below shows a demand imbalance at $1.18. There is an uptrend in the weekly timeframe. Having an uptrend does not necessarily mean we can buy GBPUSD Forex cross-pair at any time. Trading is a waiting game. Do not wait; you will lose all your money and investment overnight. We patiently waited for GBPUSD to finish the bearish leg correction until the imbalance at 1.18 was reached. Take a look at the GBPUSD chart analysis below, shared with the members last 23rd December 2022.

GBPUSD Forex analysis. New weekly demand level
GBPUSD Forex analysis. New weekly demand level

Now look at GBPUSD’s weekly timeframe analysis shared with Set and Forget’s online trading academy a few hours ago. The strong weekly demand imbalance trading at 1.18 has taken control and is trying to play out, as expected. The bullish pin candle (pin bar) created is pretty strong. Pin bars are usually reactions to bigger timeframe imbalances. However, if you are unaware of these supply and demand imbalances, you will miss many trade opportunities like the GBPUSD Forex cross-pair.

GBPUSD Forex analysis. Weekly demand level in control

GBPUSD Forex supply and demand strategy

As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings, the underlying Forex cross-pair drops like a rock, or a negative earnings announcement and the cross-pair rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.

Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements on GBPUSD Forex cross-pair.

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

Learn to trade Forex using our supply and demand trading course.

Related Post

Disclaimer

Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Set and Forget, its employees, or fellow members. Futures, options, and spot currency and stocks trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex and futures markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell spot Forex, cfd's, stocks or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.

Get Free Trade Ideas

Don’t miss out on the next big trade. Subscribe to our Newsletter.

New Book Out Now! Master Stock & Forex Trading with the Power of Supply and Demand!