Forex Signals

GBPUSD Reacts in the Supply Zone


The GBPUSD pair in its 2-hour chart exposes the bearish reaction in the supply zone located between 1.32619 and 1.32882, corresponding to the bearish movement developed by the pound on the past week when the price found fresh sellers at 1.33135.

On the other hand, the cable’s downward movement during the past week, which penetrated below the previous swing low at 1.31280, falling to 1.31050, carries us to expect further declines for the following trading sessions.


The intraday bearish reaction observed in the cable suggests the potential decline, which has a potential profit target in the congestion zone located at 1.3153.

Finally, the bearish scenario’s invalidation level locates at 1.32985, which is placed above the supply zone.


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By Eduardo Vargas

Eduardo Vargas is a technical analyst and independent trader based in Buenos Aires, Argentina. He is an Industrial Engineer and holds a Master in Finance degree. In 2008 began to trade Chilean stocks listed on IPSA. From 2013 started to trade CFDs on Forex, Commodities, Indices and ETFs markets. He analyses different markets combining the Elliott Wave analysis with Fibonacci tools. He provides a market mid-long-term vision.

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