FX.co ★ glow_with_mouchi | GBP/USD

GBP/USD remains one of the more interesting major currency pairs to watch right now. Looking at the daily chart, the overall structure has clearly shifted in favor of the buyers after the pair recovered strongly from the June low near 1.3140. Since then, price has created a sequence of higher lows and higher highs, showing that bullish momentum has gradually become stronger The most recent price action is particularly important. GBP/USD is trading around 1.3635 after reaching an intraday high near 1.3655. This area is close to the upper boundary of the recent bullish move, so I would not be surprised to see some profit-taking or short-term consolidation before the next directional move. However, I do not see a confirmed bearish reversal yet. The RSI is currently around 68.5, which tells me that bullish momentum is strong but approaching the overbought area. I consider this an important warning rather than an immediate sell signal. In a strong uptrend, RSI can remain elevated for a considerable period, and therefore I would prefer to wait for clear price-action confirmation before assuming that the rally has ended. If RSI moves above 70 while price breaks above the recent high, it could actually confirm that buyers are maintaining strong momentum. The MACD indicator also supports my bullish view. The MACD line remains above the signal line, while the histogram is positive and expanding. This suggests that upside momentum is still building rather than fading. For me, the combination of rising price action and positive MACD is one of the strongest arguments against aggressively selling GBP/USD at the current level On the upside, I am watching the 1.3670–1.3700 area very closely. A decisive daily close above 1.3670 would, in my opinion, strengthen the bullish structure and open the door toward 1.3750 and potentially 1.3800. A sustained move above 1.3700 would also demonstrate that buyers are willing to absorb profit-taking near the current highs. On the downside, the first area I would monitor is 1.3550–1.3580. This zone could act as initial support if the pair experiences a normal pullback. Below that, 1.3500 becomes much more important psychologically and technically. As long as GBP/USD remains above these support areas, I would continue to view declines as potential corrections within the broader bullish trend rather than the beginning of a major reversal My preferred approach here is therefore patience rather than chasing the price at the top. Personally, I would rather see either a confirmed breakout above 1.3670 or a controlled pullback toward support before considering a new position.