EUR/GBP 2H Analysis — Rally Into Supply, Sellers Take Control
EURGBP has delivered a textbook reaction from a high-probability supply zone after rallying into an area of previous institutional selling. The setup becomes even more compelling as price aligns with a mitigated supply region and a clear Rally-Base-Drop (RBD) formation.
The recent rejection suggests that sellers are defending premium prices, while buyers struggle to generate enough momentum to reclaim the zone.
What Makes This Setup Interesting?
🔹 Price rallied directly into a mitigated supply zone
🔹 Confluence with an RBD supply structure
🔹 Bearish reaction formed immediately upon entry
🔹 Market remains below key resistance levels
🔹 Attractive risk-to-reward profile toward lower liquidity
This is the type of setup where institutions often use retracements into premium areas to continue positioning in the direction of the prevailing order flow.
Key Levels
🔹 Mitigated Supply: 0.86780 – 0.86850
🔹 RBD Supply Zone: 0.86690 – 0.86890
🔹 Current Price: 0.86460
🔹 Bearish Target: 0.86190 demand zone
🔹 Invalidation: Sustained acceptance above supply
Market Outlook
The rejection from supply suggests EURGBP may continue seeking liquidity below recent lows. If sellers maintain control and price fails to reclaim the zone, the path toward the lower demand area remains the higher probability scenario.
A clean example of:
Mitigation → Supply Reaction → Bearish Confirmation → Liquidity Target
Rather than chasing the move lower, I prefer waiting for retracements into premium pricing where risk can be defined more efficiently.
Trading Question
Are you selling immediately after the supply rejection, or waiting for a lower timeframe break and retest before entering?
Recognise the setup? Leave your thoughts below and kindly leave a follow for more institutional-style market breakdowns. 📈
The recent rejection suggests that sellers are defending premium prices, while buyers struggle to generate enough momentum to reclaim the zone.
What Makes This Setup Interesting?
🔹 Price rallied directly into a mitigated supply zone
🔹 Confluence with an RBD supply structure
🔹 Bearish reaction formed immediately upon entry
🔹 Market remains below key resistance levels
🔹 Attractive risk-to-reward profile toward lower liquidity
This is the type of setup where institutions often use retracements into premium areas to continue positioning in the direction of the prevailing order flow.
Key Levels
🔹 Mitigated Supply: 0.86780 – 0.86850
🔹 RBD Supply Zone: 0.86690 – 0.86890
🔹 Current Price: 0.86460
🔹 Bearish Target: 0.86190 demand zone
🔹 Invalidation: Sustained acceptance above supply
Market Outlook
The rejection from supply suggests EURGBP may continue seeking liquidity below recent lows. If sellers maintain control and price fails to reclaim the zone, the path toward the lower demand area remains the higher probability scenario.
A clean example of:
Mitigation → Supply Reaction → Bearish Confirmation → Liquidity Target
Rather than chasing the move lower, I prefer waiting for retracements into premium pricing where risk can be defined more efficiently.
Trading Question
Are you selling immediately after the supply rejection, or waiting for a lower timeframe break and retest before entering?
Recognise the setup? Leave your thoughts below and kindly leave a follow for more institutional-style market breakdowns. 📈
Anulowano zlecenie
Trade reached lower targets before the Supply therefore trade cancelled!
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Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.