GBPUSD Daily Analysis 02/18/2025

Technical analysis

1. Overview of Momentum and Market Structure

• Previous Day: Bullish

• Current Bias: Bullish

• Range: 1.2577 – 1.2634

• Expectations: Price is expected to rise towards key liquidity zones before potential resistance levels.

Trading Plan

Bullish Bias

Strategy:

Look for long opportunities from liquidity zones:

• 1.2584 (H1 Liquidity - Potential Support Zone)

• 1.2598 (H1 FVG - High Probability Demand Zone)

Primary Targets:

• 1.2634 (Extreme Liquidity - Major Resistance)

• 1.2656 (Extension - Potential Reversal Area)

• 1.2669 (Extension - Additional Resistance Level)

• 1.2681 (Daily OB - Key Supply Zone)

For Short Positions

Strategy:

Look for sell opportunities at key resistance zones:

• 1.2681 (Daily OB - Strong Supply Zone)

• 1.2728 (Daily Liquidity - Major Resistance Area)

Sell Targets:

• 1.2598 (H1 FVG - Potential Demand Zone)

• 1.2577 (Range Low & Reversal Zone)

Summary

• Bullish bias is valid above 1.2577, targeting 1.2634, 1.2656, and 1.2681.

• A clean break above 1.2681 could push price towards 1.2728.

• Short setups are valid at 1.2681 and 1.2728 for possible reversals.

• Buy setups remain valid near 1.2598 and 1.2584.

• Monitor liquidity grabs and fair value gaps (FVGs) for price reactions.