medium · Volume Profile Analysis reference-levels-migration

An analyst is reviewing a GBP/USD 'Composite Profile' over the last 20 sessions. They notice a 'Naked POC' at $1.2710 from 12 days ago. Today's price is $1.2650 and is currently in a 'Neutral-Extreme' day type moving upward.

What is the most likely behavior as price approaches $1.2710?

  1. The level will be ignored because POCs lose all relevance after 10 sessions.
  2. Price will accelerate through the level because it is an 'LVN' on the monthly scale.
  3. A 'liquidity sweep' is guaranteed to occur 2 pips above the level.
  4. The level will act as a magnet, drawing price toward it before finding resistance.

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