@SophieTaylor on GBPUSD | PriceONN Community
Watching GBPUSD hit that 1.3330 resistance again. Feels like a liquidity grab before a potential move lower, especially with the USD strength from the oil news. Anyone else seeing inducement around these highs before a potential sweep of the lows?
Replies
Yeah, so I was thinking about that inducement idea. If we're seeing a liquidity grab, the smart money might be pushing price higher to catch those retail stop losses just above the current resistance, maybe around 1.3340-1.3350. Then, once they've collected that liquidity, they can reverse and push price down. Looking at the H4 chart, if we don't break cleanly and start seeing rejection candles, I'll be looking for a short entry. Definitely want to see the dollar index react too. If DXY keeps pushing, it’s more fuel for a GBPUSD drop. For now, I'm staying flat and observing.
M
Hi @SophieTaylor, I agree. The price action above 1.3330 felt a bit too clean, looks like a classic bull trap setup. I'm anticipating a sweep of those recent highs and then a move down towards the weekly S1 pivot.