GBP/USD | Drop first, liquidity sweep, bounce back up then!
By analyzing the 4H chart of GBPUSD we can see that last week, it started a sharp upwards move, going from 1.3287 all the way to 1.3506! After breaking above the FVG, GBPUSD dropped and is currently being traded at around 1.3470 level.
Well, considering the geopolitical tensions somewhat easing down, and a return to negotiations between the US and IR, Cable is expected to have short-term upwards move, with a deal being made is close according to President Trump.
I'd like to see a drop to the 1.34 level for GBPUSD, sweeping the Minor SSL and then bounce back up from the FVG Low at 1.3399 level, and go towards the buyside liquidity at 1.3506 level and sweep the liquidity there, going towards the supply zone to retest it once more.
Targets: 1.3410, 1.3420, 1.3430, 1.3440, 1.3450, 1.3460.
However, if Cable fails at bouncing back up from the 1.3399 level, further drop towards the 1.3333 level is expected, sweeping the liquidity there and then using the 4H FVG Low at 1.3318 level to bounce back up.
However if Cable fails to bounce back up once more, I'd expect further drop towards the 1.3273 level to sweep the liquidity there and then go back up.