CPI has helped the pound to a bearish correction, which is very good news for me as I would like to buy GBP/USD but, the price is too expensive now. Eventually, I would like to see the correction continue to the 1.285 - 1.29 zone. This zone corresponds quite closely with the Fibonacci (FIB) levels (0.618/0.5) and with the previous structure. As for the Imbalance zones, in terms of the daily time frame (TF,) the nearest unfilled one is at the 0.5 FIB level. *
Should the price correct back to the zones, I will be looking for buying opportunities. The condition is to maintain the bullish structures. The higher low is located at 1.25912, and the price may not close below this level on the four-hour TF with its candle. That would imply the potential for a deeper correction, and the buy set-up would be invalidated [1].
Reference to 5-year performance DXY: https://tradingeconomics.com/dxy:cur
Reference to 5-year performance GBP/USD: https://tradingeconomics.com/gbpusd:cur
* Past performance is no guarantee of future results
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.