GBPUSD Daily Analysis 02/21/2025

Technical analysis

1. Overview of Momentum and Market Structure

• Previous Day: Bullish

• Current Bias: Bullish

• Range: 1.2562 – 1.2673

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

Trading Plan

Bullish Bias

Strategy:
Look for buy opportunities from key demand zones:

• 1.2639 (Daily FVG - Key Demand & Support Zone)

• 1.2622 (H4 FVG - Institutional Buying Zone)

• 1.2596 (H1 Liquidity - Potential Reaccumulation Zone)

Primary Targets:

• 1.2673 (Extreme Liquidity - Major Resistance & Take-Profit Zone)

• 1.2728 (Daily Liquidity - Strong Liquidity Grab Zone)

• 1.2749 (Daily OB - Key Reversal Area)

For Short Positions

Strategy:
Look for sell opportunities at strong resistance levels:

• Sell Levels:

  • 1.2728 (Daily Liquidity - Potential Rejection Zone)

  • 1.2749 (Daily OB - Major Distribution Area)

Sell Targets:

• 1.2639 (Daily FVG - First Downside Target & Demand Zone)

• 1.2622 (H4 FVG - Institutional Buying Zone for a Possible Bounce)

• 1.2596 (H1 Liquidity - Strong Buy Re-entry Zone)

Summary

• Bullish bias remains valid above 1.2596, targeting 1.2673, 1.2728, and 1.2749.

• A clean break above 1.2673 (Extreme Liquidity) may trigger further upside momentum.

• Short setups become valid near 1.2728 and 1.2749 for potential reversals.

• Monitor price action at liquidity levels and FVGs for trade confirmations.