Breaking down the current structure for the British Pound for the upcoming weeks:
đź“Ś Context & Market Mechanics:
Initial Impulse: A Key Imbalance was previously formed, followed by a rebalance up to the 1.618 Fibonacci levels, sweeping liquidity along the way.
Second Imbalance: During the downward movement for liquidity, another Key Imbalance was created.
Rejection: Price attempted to rebalance this area but met clear resistance and reacted downwards.
📉 Roadmap:
Phase 1 (Initial Markdown):
Expecting a continuation of the downward move delivering price to the lower 1.414 levels (around 1.3250), fully sweeping the accumulated sell-side liquidity below.
Phase 2 (Reversal & Markup):
Following the test of the lower zone and liquidity sweep, I expect a bullish setup to form, triggering a structural shift upward — targeting the fill of the upper imbalance formed earlier and sweeping the main Buy-side Liquidity above the high (1.3650+).