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.
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.
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.
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