GBPUSD Breaks Out of Accumulation Phase

Market Analysis – January 6

GBPUSD has broken out of its recent reaccumulation phase, continuing its bearish momentum on the daily chart. This phase, which lasted from late November into early January, has now given way to an impulsive downward movement, targeting a liquidity pool at the 1.23000 level.

GBPUSD Key Levels

Demand Levels: 1.24000, 1.20370, 1.18020
Supply Levels: 1.28110, 1.34240, 1.36000

GBPUSD Long-Term Trend: Bearish

GBPUSD has shown consistent bearish tendencies, punctuated by two distinct reaccumulation phases within its current downward trajectory. The first phase spanned late October into November, followed by a distribution phase that resulted in a 4.3% decline over two weeks.

Following the formation of a swing low at 1.25070, the market formed a complete market maker model within a microstructure. During this period, GBPUSD peaked at 1.28110, where the Stochastic indicator signaled overbought conditions. This prompted a shift toward sell-side liquidity, reinforcing the bearish side of the microstructure trend.

GBPUSD Short-Term Trend: Bearish

On January 2, GBPUSD broke below the reaccumulation phase low at 1.25070, dipping into the 1.23990 demand zone. The price rebounded due to support at this level, testing a bearish order block from the previous accumulation phase.

This setup presents an opportunity for traders to capitalize on the bearish order block as a potential entry point for short positions. With the continuation of bearish sentiment, sellers could drive the market toward 1.23000. Additionally, integrating forex signals into analysis strategies can further enhance decision-making.

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