GBP/USD Bearish Reversal From Supply Zone — Sellers Take Control

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GBP/USD Bearish Reversal From Supply Zone — Sellers Take ControlGBP/USDOANDA:GBPUSDMrJasim_07GBP/USD 2H Sell Setup — Resistance Rejection Targets 1.3385 📉 GBP/USD has delivered a powerful bullish impulse from the lower blue demand zones and is now trading near 1.3467, directly inside a major 1.3465–1.3480 resistance/supply area. This is a critical level because price has previously reacted lower from this region, and the chart projects a possible liquidity sweep above the current highs before sellers regain control. 🐻 The rally into resistance is strong, but strong rallies often attract late buyers just before price reaches an area where larger sell orders may be waiting. For that reason, the preferred view is not to sell blindly at current price; instead, wait for bearish confirmation from the resistance zone. Resistance / Sell Zone 🚧 1.3465–1.3480: Primary sell zone. This is the key supply area marked on the chart and the area where bearish rejection is expected. 1.3480–1.3500: Possible liquidity-sweep region. Price may briefly push above the initial resistance before reversing. Above 1.3500: A sustained 2-hour close above this area would weaken the bearish setup and suggest buyers remain in control. Downside Target Zones 🎯 1.3420–1.3400: First intraday support and initial downside objective. Sellers may pause here, so partial profit-taking is sensible. 1.3385: Main target area shown on the chart. This is the primary bearish objective if price rejects the resistance zone. 1.3330–1.3340: First blue demand zone. If the selloff gains momentum, this becomes the next major support. 1.3280–1.3300: Deeper demand zone and extended downside target. This is only relevant if GBP/USD breaks decisively below 1.3330. 📊 Bearish Trade Plan 💡 The best short setup is a confirmed rejection from 1.3465–1.3480. Confirmation can include a long upper wick, bearish engulfing candle, lower-high formation, or a break back below local support after testing the zone. A possible step-by-step plan: Allow price to test or sweep 1.3465–1.3480. Wait for clear bearish price action on the 1H or 2H chart. Enter only after sellers show control; avoid chasing the first candle. Target 1.3420–1.3400 first. Secure partial profit, then hold a smaller position toward 1.3385. If downside momentum remains strong, watch 1.3330–1.3340 as the next target. 🎯 Bullish Invalidation Scenario 🟢 If price closes and holds above 1.3500, the sell setup becomes invalid. A breakout followed by a successful retest would indicate that buyers have absorbed the supply zone, potentially opening the way toward the previous weak high near 1.3550. Do not hold a sell position simply because the level “should” reject—price confirmation is always more important than bias. Risk Management 🧠 Place the stop-loss above the resistance zone or above the liquidity-sweep high that invalidates the setup. Position size should be calculated so that one losing trade risks only a small, fixed portion of the account—commonly 0.5–1%. Take partial profits at the first target and consider moving the stop-loss to breakeven once the market moves in your favour. Avoid adding to a losing position, especially if GBP/USD is holding above resistance. High-impact UK or US news can also cause sharp spikes, so check the economic calendar before entering. ⚠️ Overall, GBP/USD is at a major decision area. The bearish idea remains valid while price stays below 1.3480–1.3500, with 1.3385 as the main downside target. A confirmed rejection from supply could offer a cleaner sell opportunity than entering immediately.