GBPUSD Daily Analysis 02/20/2025

Technical analysis

1. Overview of Momentum and Market Structure

• Previous Day: Bearish

• Current Bias: Bearish

• Range: 1.2639 – 1.2562

• Expectations: Price is expected to decline towards liquidity zones before potential reversals.

Trading Plan

Bearish Bias

Strategy:
Look for sell opportunities from key resistance and liquidity zones:

• 1.2613 (H4 OB - Potential Sell Zone & Supply Area)

• 1.2606 (H1 Liquidity - Short-Term Resistance Zone)

Primary Targets:

• 1.2562 (Extreme Liquidity - Strong Demand Level & Key Support Zone)

• 1.2542 (H4 FVG - Major Liquidity Grab Zone & Possible Reversal Area)

• 1.2483 (Daily FVG - Strong Demand & Long-Term Support)

For Long Positions

Strategy:
Look for buy opportunities at strong demand levels:

• Buy Levels:

  • 1.2542 (H4 FVG - Key Demand Zone & Possible Reversal Point)

  • 1.2483 (Daily FVG - Strong Support & Major Institutional Level)

Buy Targets:

• 1.2606 (H1 Liquidity - First Upside Target)

• 1.2613 (H4 OB - Potential Rejection Area)

• 1.2639 (Range High & Key Resistance Level)

Summary

• Bearish bias remains valid below 1.2613, targeting 1.2562, 1.2542, and 1.2483.

• A clean break below 1.2562 (Extreme Liquidity) may accelerate selling pressure.

• Long setups become valid near 1.2542 and 1.2483 for potential rebounds.

• Monitor price action at FVGs and liquidity zones for confirmation.