GBPUSD ran hourly sellside liquidity during NY session before continuing lower. After the higher timeframe alert from ScanLiquidity, lower timeframe confirmation formed through a bearish BOS and FVG rejection, leading to a clean 1:2 continuation short setup.
HTF H1 Context
GBPUSD taking hourly sellside liquidity before continuing lower.
GBPUSD was already trading bearish on the higher timeframe. During NY session, price pushed below an hourly swing low and took sellside liquidity resting underneath the range.
Normally after a liquidity event I look for how price reacts immediately after taking the low. In this case, buyers failed to reclaim price back above the broken level and the market kept accepting lower prices.
That immediately made me focus more on continuation shorts instead of trying to catch a reversal.
This is where the ScanLiquidity H1 alert triggered.
The Alert
Real time hourly sellside liquidity alert triggered by ScanLiquidity.
The alert caught my attention because the liquidity run happened in the direction of the existing bearish higher timeframe structure.
Instead of jumping into the move immediately, I waited for lower timeframe confirmation and a cleaner retracement entry.
M1 Execution
Bearish BOS followed by FVG tap and rejection on M1.
Here is how I approached the execution after the hourly liquidity run:
-
Bearish BOS
After taking the hourly low, price formed a bearish BOS on M1.
That confirmed sellers were still in control and this was more likely continuation rather than a reversal setup. -
FVG Formation
The bearish displacement created a clean bearish FVG during the move lower.
Instead of chasing the move, I waited for price to retrace back into the imbalance. -
FVG Tap + Rejection
Price tapped the bearish FVG and reacted nicely from the zone.
That rejection became the confirmation for entry.
Compared to some earlier setups, this one moved fairly clean after entry without much chop.
Trade Summary
| Metric | Value |
|---|---|
| Pair | GBPUSD |
| Direction | Short |
| HTF Bias | Bearish |
| Entry Timeframe | M1 |
| Confirmation | BOS + FVG rejection |
| Session | NY |
| Risk Reward | 1:2 |
Why This Setup Worked
The higher timeframe structure already favored bearish continuation. Once hourly sellside liquidity was taken and price failed to reclaim the level, continuation lower became more likely.
The bearish BOS confirmed lower timeframe weakness, while the FVG retracement provided a cleaner and more controlled entry.
The combination of:
- Higher timeframe bearish structure
- Hourly liquidity run
- Bearish BOS
- FVG retracement
- Strong rejection from imbalance
created a simple but clean continuation setup.
What Would Invalidate This Setup?
If price reclaimed the bearish FVG and started accepting back above the BOS area, the continuation thesis would weaken significantly.
That would suggest sellers were losing control and the liquidity run failed to continue lower.
For educational purposes only. Not financial advice.
