GBPUSD – Bearish Setup Forming | Fair Value Gap Rejection PlayThe 4H chart on GBP/USD shows a clean bearish market structure, with price currently in a corrective phase after recent downside momentum. A Fair Value Gap (FVG) has been identified between the 1.29700–1.30000 range, which acts as a key supply zone for potential short setups.
📊 Technical Breakdown
1. Fair Value Gap (FVG)
A visible imbalance was left after an aggressive bearish move—marked in the yellow zone.
Price is expected to retrace into this inefficient zone to fill orders before continuing downward.
The anticipated entry for shorts is around 1.29798, near the midpoint of the FVG.
2. Bearish Market Structure
Lower highs and lower lows dominate the current structure.
The bounce is corrective in nature and lacks momentum, indicating a potential bull trap.
Expecting a short-term retracement up to the FVG zone, followed by a continuation to the downside.
3. Target Zone
Target: 1.28042 — this level sits just above a previous demand zone, making it a natural TP1.
This area also overlaps with previous price reactions, giving it high confluence.
🧠 Trade Idea
Entry: ~1.29798 (within the FVG)
Target: 1.28042
Risk Management : A stop loss above 1.30000 or above the upper boundary of the FVG to account for false breaks.
Rationale: Risk-reward is favorable due to tight invalidation zone and strong downside continuation probability.
⚠️ Key Notes
Watch for confirmation at the FVG zone such as bearish engulfing or lower timeframe break of structure.
If price breaks above 1.3000 and holds, the idea will be invalidated.
