GBPUSD Trade Setup – 22nd Oct

GBP/USD opens the day under pressure again, near 1.3328, and our strategy team assigns this setup an A+ (3/3) conviction score, where fundamentals, technicals, and sentiment/positioning are aligned. On the macro side, the balance of risks tilts modestly USD-supportive while UK growth and inflation dynamics keep the BoE on a cautious path relative to the Fed. Technically, price action continues to respect a well-defined supply band into 1.3360 – 1.3410, with momentum rolling over after repeated failures there. Broader sentiment adds confluence: sterling remains sold on rallies, while downside liquidity and dealer stop pockets sit just beneath recent lows. Together, these factors frame a clear, rule-based short-the-bounce opportunity for disciplined execution. Pair / Asset Bias & Entries Stop / Invalidation Targets Why A+ (fundamentals, technicals, sentiment/positioning) Near-term catalysts (UK time) GBP/USD SHORT on bounces 1.3360 – 1.3410; add on break/back-test 1.3300 Daily close >1.3460 T1 1.3240, T2 1.3160 Fundamentals: UK CPI held at 3.8% y/y (vs 4.0% exp) – softer GBP as markets price earlier BoE cuts/less hawkishness. Technicals: Breakdown through 1.3400/1.3350 area. Sentiment: Sterling offered across the board after CPI; UK borrowing worries weigh. Stops/Options: EUR/GBP pop and GBP/USD slide post-CPI; flows clustered sub-1.3350. Thu 24 Oct: UK Flash PMIs 09:30; Thu 24 Oct: UK retail sales revision risk via PMIs commentary; Thu 6 Nov: BoE decision 12:00. Chart by TradingView – GBPUSD Trade Setup – 22nd Oct Conclusion We’re looking to sell strength into 1.3360 – 1.3410, with a tactical add on a clean break/retest of 1.3300, protected by an invalidation above 1.3460. Initial downside objectives are 1.3240 and 1.3160, where we’ll reassess momentum, liquidity, and event-risk carry-through. This plan earns its A+ rating because the macro narrative (relative policy and growth), the chart structure (defined resistance, weakening momentum), and the flow picture (market fading sterling rallies and clustered stops below) all point the same way. As ever, we’ll respect risk first: if incoming data or price action negates the thesis, we step aside quickly and re-evaluate. For similar Forex Trade Signals please visit our forex trade ideas page. Please visit our Disclaimer page. Disclaimer Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. TerraBullMarkets.com does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets or any financial instrument involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TerraBullMarkets.com nor any of its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. TerraBullMarkets.com and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. TerraBullMarkets.com and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and TerraBullMarkets.com are not registered investment advisors and nothing in this article is intended to be investment advice.   TerraBullMarkets...