Last week, the pound declined toward the 1.34710 level and managed to stabilize below the previous low. The price closing in this area indicates that bearish momentum remains active; however, the positioning of price within the market Order Block has placed the market in a decision zone.
Daily Timeframe – GBP/USD
Last week, the pound declined toward the 1.34710 level and managed to stabilize below the previous low.
The price closing in this area indicates that bearish momentum remains active; however, the positioning of price within the market Order Block has placed the market in a decision zone.
Main Scenario (Higher Probability)
The price is currently positioned within the market order block zone. If demand enters the market and signs of buyer support are observed, there is a probability of a bullish corrective move forming during the current week. This move could extend toward filling the Fair Value Gap (FVG).
Initial Upside Target:
Fair Value Gap zone at 1.35847 – 1.36235
In this scenario, the market enters a pullback phase within the context of the broader downtrend.
Alternative Scenario (Lower Probability)
Selling pressure over recent weeks remains significant. If a valid downside break of the market order block occurs and price stabilizes below it, the bearish structure will strengthen. This breakdown may trigger liquidity resting below the market.
Downside Target:
Previous liquidity sweep zone at 1.33391
1 Hour Timeframe
1 Hour Timeframe – GBP/USD
In the 1 hour timeframe, the pound has continued its decline within a strong bearish structure. After reacting to the 1.34356 level, price formed a limited correction; however, renewed signs of selling pressure are once again visible in the market. The current structure remains in a short term distribution phase.
Main Scenario (Bearish)
The dominant trend on H1 remains bearish. If a lower low is established below 1.34356, the bearish structure will be reconfirmed. A break below this level could activate sell side liquidity.
Downside Target:
Higher timeframe institutional zone at 1.34016
Under this scenario, continuation of the bearish leg and preservation of downside momentum is the more logical expectation.
Alternative Scenario (Bullish)
If price encounters buyer support within the Fair Value Gap (FVG) zone, the market may enter a corrective phase. Failure to print a new low could signal weakening seller pressure.
Initial Upside Target:
Previous minor high at 1.35166
Final Target (Upon Break of the Minor High):
Previous high zone at 1.35714 – 1.35778