I would like to share my thought process for this GBPAUD trade I took yesterday based on Daily level and supply and demand structure on lower time frame.
1) Price returning back to daily breakout level. Nice pause at this level before an impulsive up move. Ideal place to get long.
2) Scrolled down to 1 hour time frame to see reaction at this zone and we could clearly see some buying interest at this level on first visit. After some consolidation price made another attempt to breach this demand zone, but buyers were in control and price moved up with some momentum this time and a demand structure was developed on chart.
3) In order to move price higher, buyers need to consume above supply zone, which they did and price moved higher towards next supply zone. The up move was not high momentum due to lack of volatility, as such take profit was conservative and didn't target the actual supply zone above.
1) Price returning back to daily breakout level. Nice pause at this level before an impulsive up move. Ideal place to get long.
2) Scrolled down to 1 hour time frame to see reaction at this zone and we could clearly see some buying interest at this level on first visit. After some consolidation price made another attempt to breach this demand zone, but buyers were in control and price moved up with some momentum this time and a demand structure was developed on chart.
3) In order to move price higher, buyers need to consume above supply zone, which they did and price moved higher towards next supply zone. The up move was not high momentum due to lack of volatility, as such take profit was conservative and didn't target the actual supply zone above.