GBP Futures (6B, June)
General bearish bias was correct on Friday, and we remain with this bias intermediate term however we have some good space to fill before rolling over once again. With that in mind there is a possibility of a short term long position to revisit some important levels. As I write this, there is nothing overly clear in terms on entries on the Daily profile (fig.1) however there is a possibility of a trade using the AM session (fig2)
Line in the sand for longs (short term): 1.2380 (trading view)
VWAP Angle: +72 (bullish)
Daily Profile (fig.1) - Trading outside previous days value, meaning AMT says expect price discovery lower.
AM session Profile (fig.2) - we are watching for a dip into a previous days AM single print at 1.2415 - 1.2410 (futures market) for a potential short term long position.
GBPUSD candlestick chart
As we can see, some trade possibilities however the long will need some form of confirmation via the FP chart or a lower time frame break of structure for those SMC traders. As per AMT, this could just drop lower wiping out the Asian low from here therefore the long position really would need a loss of momentum of a switch in order flow to confirm. Its not a set order.
EURO futures (6e, June)
We are expecting a similar picture to GBP in the sense of a deeper pullback following Fridays sharp selloff. As such we can look for areas to take a short term long (counter trend) in order to short it once again. The AM profile shows us some support that would need to hold in order to validate longs. There is nothing clear in terms of trade setups at the minute however the bias remains bullish for the next 24 hours until we can rebalance the market and search for shorts.
AM session profile (fig.4)
Daily Profile (fig.5) - As per AMT, we should sell off outside of yesterdays value area however given the speed of the selloff, I believe there will be inefficiencies to be filled driving prices higher in the short term. Therefor, a break back into value could be considered a bullish signal and await a pull back using VWAP, or the session profiles for a more accurate entry.
EURUSD candlestick chart
There are few interesting levels to note however its clear that the strong supply on the daily TPO aligns with order block (SMC) style, therefor we would expect a reaction from this zone with a potential setup if we pullback this high.
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