GBPUSD MARKET ANALYSIS

 Hello traders, as I mentioned in the previous post the CPI news had heavy effects on all dollar pair markets and I'm also looking at potential GBPUSD shorts. Price dropped from a major H4 & daily supply zone at 1.24326 & 1.23915 which is the origin of the previous drop to the major H4 & daily demand. Price dropped to 1.19760 then rallied to retest the H1 & H4 BOS at 1.22428 & 1.21930 before a continuation of the drop. Price rallied to the H1 & H4 BOS and spiked to 1.22428 during the CPI news forming a strong rejection wick with candle close inside BOS followed by a strong H4 bearish engulfing candle with a strong wick to the downside showing strong selling pressure. Took sell positions during NY session at 1.22108 with SL at 1.22440. Setup taken is a rally base drop, a reversal setup and my target is at the next H4 & daily demand zone at 1.18564 & 1.17548.

Price dropped 60 pips to the 1st H1 low at 1.21500 in 2 strong bearish engulfing candles then retraced to 1.21800 before a continuation of the drop. Price gained strong bearish momentum during London session after the GBP CPI news release. Price strongly dropped in all bearish candles taking out the H1 low confirming a shift in market structure to bearish. Price dropped 200 pips to the next H1 & H4 low at 1.19900 filling the 1st H1 & H4 range and still showing more bearish potential towards the major H4 & daily demand at 1.18564 & 1.17548.

Price retraced 70 pips to 1.20630 forming a higher low on H1 & H4 followed by a strong drop taking out the H1 & H4 low and forming a lower low at 1.19486 confirming a continuation of the drop to the target daily demand zone at 1.18564 & 1.17548. Price dropped 300 pips to 1.19200 where I closed out my positions before price retraced strongly forming a strong rejection wick with a rally back to 1.20400 as the markets approach close of the week.
R : R = 1 : 7