GBPUSD ANALYSIS 7 AUGUST 2025

RFX Market Analysis
king_samuel

FULL TECHNICAL ANALYSIS: GBPUSD (M5)

1. Price Action Patterns

• Strong bullish breakout after long accumulation phase.

• A textbook liquidity sweep + bullish engulfing combo before rocket launch.

• Recently formed equal highs / liquidity pool at 1.34230 — ripe for manipulation.

2. Range-Bound Structure

• Market just broke out from a tight range (1.33880 – 1.34130).

• Now it’s testing the upper range / fib zone confluence around 1.34230 — potential reversal trap if liquidity hunted.


3. Trend Analysis

• Short-term trend flipped bullish after bounce from previous demand.

• Medium-term descending trendline just broken — but keep your eye out: if it fakes out and reverses below 1.34130, the downtrend resumes.

4.  Volume Analysis (Implied from PA)

• Momentum candles on the breakout = high buyer aggression.

• Weak follow-through afterward = potential bull trap in motion.

5.  Support & Resistance

• Support: 1.34065 (38.2%), 1.33940 (base of previous demand)

• Resistance: 1.34260 – 1.34300 (liquidity & fib confluence zone)

6.  Momentum

• Momentum peaked, price is stalling near high — watch for divergence.

• RSI/Volume unseen but price action shows exhaustion.

7.  Wave Analysis

• Impulse wave up completed, we may now be in a corrective A-B-C wave.

• Wave C might target 38.2% – 50% fib retracement before next decision zone.

8.  Market Volatility

• High volatility spike on breakout — likely engineered for liquidity grab.

• Currently stabilizing — next move could be explosive if 1.34300 gets rejected.

________________________________________

HYPOTHETICAL TRADE SETUP (FOR DAYTRADE)

🔻 ORDER TYPE:

Sell Limit @ 1.34260

🎯 Take Profit (TP):

1.33950

🛑 Stop Loss (SL):

1.34350

⚠️ Risk-to-Reward Ratio:

1:3 (Asymmetry, baby)

✅ Confidence Level:

80%

________________________________________

JUSTIFICATION

• Price rejected from fib confluence zone + prior swing high.

• Low timeframe shows signs of exhaustion.

• Big bullish impulse done — pullback expected.

• This is smart money zone to sell into the liquidity.

________________________________________

📌 This is a hypothetical idea for education — not financial advice. You make your own damn calls. Subscribe to my channel for more.

Copyright reserved to the author

Last updated: 08/07/2025 18:07

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