FX.co ★ Jackroay | GBP/USD

I see the pound reaching what I earlier defined as the edge of its correction around the strong support at 1.3682, and I also note that the broader correction boundary sits near 1.3671, which initially looked like an attractive buying zone to me. I observe, however, that the daily timeframe is still sending bearish signals through CCI, MACD, and stochastics, and I interpret the large but ordinary volumes on the last daily candle as confirmation that this move may only be the beginning of a deeper correction. I read the daily structure as pointing toward 1.3589, where I expect EMA20 to act as dynamic support and potentially allow a return toward the main trend, but only after resistance at 1.3748 is reclaimed. I notice that the H4 chart tells a slightly different story, as oscillators are already positioned to suggest at least a pause in the daily decline. I consider 1.3682 and possibly 1.3661, especially during the Asian session, as potential reversal zones supported by declining H4 volumes and the presence of EMA65 nearby. I recognize that signs of a corrective end are forming on the intraday charts, yet I remain cautious because a true bullish return, in my view, will only be validated after a break above 1.3748.

I interpret Friday’s price action as evidence of willingness to move further south, as the single upward spike failed to hold and bulls quickly lost control again. I feel that the market did not build meaningful support during the previous rise, which makes me think that declines after such a rally can unfold quickly without strong reaction zones. I prefer holding short positions and I see 1.3730 as an ideal zone for new entries if price retraces there, especially where midline confluence aligns with my moving averages. I observe that the weekly candle closed with a tiny bullish body but a long upper shadow, and I read this as a sign that buyers failed to secure higher territory despite reaching levels not seen since 2021. I acknowledge that stochastic on the weekly still hints at growth, yet I cannot assign priority to that signal because the closing level near 1.3682 is far below the last zigzag peak at 1.3787. I remain generally biased toward decline, while I admit that on H1 I must wait for confirmation either above or below key indicator lines such as the Boa(50) and fractal signals before committing to fresh positions.