Michael reviewed GBP/USD trading opportunities during the London session using price action and fair value gap analysis.
The session focused on identifying buy-side liquidity targets and demonstrating trade execution on a demo account with specific technical levels.
Key points included setups based on reclaimed bullish fair value gaps, partial profit-taking, and the impact of current low volatility in Forex markets.
Action Items
(no explicit action items or assignments were recorded in this transcript)
GBP/USD London Session Trade Analysis
Michael observed a shift in market structure after a sell-side liquidity event and identified a premium buy-side liquidity pool as a target.
Described active accumulation and entered buys within reclaimed bullish fair value gaps.
Setup stop-losses just below the midpoints of fair value gaps for risk management.
Discussed taking partial profits at low-hanging fruit objectives (annotated liquidity pools) and leaving a final balance for further movement.
Highlighted the importance of respecting key technical levels (such as the 1:30 a.m. high and fair value gaps) for future price action.
Noted all executions were on a demo account for illustrative purposes.
Market Context and Commentary
Michael emphasized current low volatility and range-bound conditions in Forex, partly attributed to ongoing global policy developments.
Mentioned that patience is required for Forex participants given muted ranges, but expects increased volatility later in the year.
Stressed simplicity in trade execution rather than seeking complicated setups, especially during periods of low range.
Decisions
Demonstrate trade setups using a demo account — To address frequent community requests and illustrate strategy applicability despite current low volatility.
Open Questions / Follow-Ups
Will Forex volatility increase as anticipated with forthcoming policy changes and the new presidency’s influence on global trade?
Are further modifications needed to adapt the current algorithm to small-range conditions in the Forex market?