GBPUSD Long ‘Squeeze’

The short sellers came in to ‘squeeze’ the GBPUSD long’s. The squeeze is represented by the dark grey area, which pushed priced through a previous liquidity area (purple outline).

lonsqeeze

Suits me, because I’d like a much lower price to get long.

As price has not been squeezed below the option barrier and below the previous days ‘inverse range low’ I would expect GBPUSD to at least test the previous low.

Something like this is a viable ‘scenario plan’

lonsqeeze2

Low target two (LT2) is also a possibility at around 1.53475 is also a possibility. At least for a liquidity grab

GBPUSD Demand Levels

These are the little ‘ledges’ of demand it helps to pay attention to if like me, you think that you ought to be in a trade, before price moves. This little level on GBPUSD appeared at just below value (where the liquidity is).

GBPUSDledge

Trading (IMVHO) is all about levels and not chasing momentum up, down and all over the chart. The rate of return of passive buyers and sellers, always better than aggressive traders.

A recurring theme of this blog will probably be, assessing where ‘value’ lies. Really you should attempt to buy at below value and sell above it and vice versa . Makes sense?

Bearing in mind that the markets assessment of value is constantly changing due to news events and the fundamental macroeconomic situation.