FX.co ★ Jackroay | GBP/USD

I observed that the GBP/USD pair experienced a slight pullback after updating its local high at 1.3614 on Thursday, closing the week near 1.35. I noted that the broader trend still remains upward, and I continue to believe that only a confident breakout below the 1.34 level would put this bullish momentum on hold. I also think that such a move would not indicate a full reversal but rather a healthy correction towards the longer-term support zone, likely around the mid-1.32 area. I noticed that open interest on pound futures declined on Friday after previously increasing for several sessions, which I interpret as a sign that some buyers decided to lock in profits ahead of the weekend. I believe the future movement of the pair will heavily depend on whether this wave of position-closing continues or not. If I see more liquidation of long positions in the coming days, I expect the corrective movement to deepen. I plan to monitor the market closely, especially the reaction around the key support levels, as they may indicate the next impulse.

I still hold my short position from 1.3540, and I admit that I did not close it at 1.3490, where the price tested the moving average at the time. I had bigger plans for a deeper drop, which unfortunately didn’t play out as expected. I observed the pair set a fresh local high at 1.3614 instead. Now, I see the current price at 1.3524, which is already below the hourly XamaSystem indicator and the 1.3536 moving average, indicating a bearish bias in the short term. I consider three potential outcomes here: first, the price may reverse upward from current levels and attempt to retest the 1.3614 high. Second, I might witness a decline to the 1.3490 support level, followed by a bullish reversal from that point. Third, I could see a stronger bearish move that breaks 1.3490 support, leading the way to 1.3414, which I believe would signal a deeper correction. I remain cautious but engaged, and I am ready to react based on price behavior at those key levels.