GBPUSD MARKET ANALYSIS

 Hello traders, I hope you're all doing well and you're ready for this new trading week and also last trading month of the year 2023. This week is flooded with fundamental news releases from CPI to FOMC and PPI news and they all have high impact on the markets. Into the week I'm looking at GBPUSD where market opened this week at 1.25460 and then rallied to 1.25900 forming a lower high during Asian session into mid-London session. Price formed a lower high and failed to break it and instead reversed and dropped to 1.25465 during NY session forming a lower low confirming a potential continuation of the bearish sentiment. I anticipated a continuation of the drop lower with more confirmations when price breaks the H1 lower low at 1.25000 and fills the range back to H1 & H4 demand zone at 1.24600 & 1.24000.

Price dropped 50 pips from the H1 lower high back to H1 low at 1.25400 and failed to break it during London session into NY session hence retracing back to the previous H1 lower high at 1.25900. Price then spiked sharply taking out the H1 lower high at 1.25900 and rallied back to the H1 & H4 supply zone during NY session after the CPI report release. Price formed a strong liquidity grab and left a strong rejection wick with candle closes below supply followed by a strong drop to back to 1.25200 confirming the bearish sentiment. Took sell positions during NY session at 1.26050 with SL at 1.26250. Setup taken is a rally base drop, a reversal setup and my target is at the H1 & H4 demand zone at 1.24560 & 1.24000 . I still anticipate more bearish momentum into the week to take out the H1 lower low at 1.25000 before dropping lower.