GBP/USD Bearish Setup – FVG Retracement to Target Liquidity ZoneThis chart shows a bearish price setup for GBP/USD on the 1-hour timeframe, with smart money concepts, key EMAs, and a clear projection of price movement.
🔍 Technical Analysis Breakdown
1. Price Context
Current Price: 1.28987
Trend: Price has broken market structure to the downside, suggesting a potential shift from bullish to bearish.
Key Indicator Levels:
EMA 30 (Red): 1.29948 – now acting as dynamic resistance.
EMA 200 (Blue): 1.29760 – another strong resistance level just above.
📌 Key Zones Identified
🔵 Fair Value Gap (FVG) – Supply Zone
Location: Between ~1.29760 and 1.30172
Significance: This is a potential liquidity zone where institutions might offload positions.
Plan: Price is expected to retrace up into this FVG before continuing lower.
🔻 Target Zone – Demand Area
Location: Around 1.27396
Labeled: “target point EA”
Significance: This area is projected as the final bearish target, likely aligning with equal lows or liquidity zones.
CHoCH (Change of Character)
Visible at the structure break, confirming bearish intent and a shift in momentum.
🧠 Projected Price Action (In Blue Arrows)
A potential retracement to the FVG zone.
Rejection from this zone.
Continuation to the downside through intermediate pullbacks.
Final target at 1.27396.
🛠️ Trade Idea Summary
Sell Setup:
Entry Zone: 1.29760–1.30172 (FVG)
Target: 1.27396
Stop-Loss: Above 1.30172 (safely outside the FVG)
🧾 Conclusion
This setup aligns with smart money principles — a CHoCH followed by a retracement into an FVG, with downside continuation into a liquidity target zone. The EMAs support the bearish thesis, offering confluence for rejection.
