The FVG mentioned during my April 18 analysis has become a buying order block that causes GPBUSD’s recent price rebound. Is it enough to end its underlying down trend?

This latest rebound has triggered my previous long trade plan’s take profit level:

https://www.finlogix.com/analysis/20240418/gbpusd-intraday-analysis-and-trading-plan-for-april-18-2024-124907

Join me as I give a new insight for GBPUSD.

There are no further British major economic releases to end the trading week after a mixed Flash Manufacturing and Services PMIs result last Tuesday.

Re-assessing GBPUSD’s high timeframe candles:

Yearly Candle: Last check is a Red Body with a Longer Head Wick now a Red Spinning Top

Monthly Candle: Still a Red Body since last check but with a Longer Tail Wick

Weekly Candle: Previous close is a Red Imperfect Shaven Bottom current is a Green Body with a Longer Tail Wick

Daily Candle: Previous close is a Green Body current is a Red Body

A completely retraced FVG structure becomes a valid order block only if it reverses the price direction.

This exactly happened to GBPUSD after Monday’s dips.

On the daily chart, price rose for 3 consecutive days after the slump on Monday but today’s candle fails to expand higher, thus making a valid bullish gap.

The problem is this new FVG is facing a resistant order block that has been stretched since December 8, 2023 and residing near the lower high trend line area.

Price is currently consolidating in a choppy 1.2450-12.2530 range and a make or break level.

There are 2 trading choices for me based on the current price situation, to long for a break out or to short for a break down.

Therefore, my chosen bias is a continued downtrend targeting the internal low’s liquidity.

I will short this consolidation prematurely with the following sell orders:

The 1.25 should be depleted first to activate this short trade.

All trade ideas I share are my own views and for my own trades only.

Copy trading and trading directly involve risks.

GBPUSD Intraday Analysis and Trading Plan For April 26, 2024

Apr 26 2024

1