FX.co ★ elisa72 | Methodology for Analyzing Market Situations with CME Reports

GBPUSD Here is a gamma profile for the pound as well.

The market is currently right inside a zone of very dense positive gamma control. This means one important thing: it is advantageous for dealers to keep the price within this range until an impulsive imbalance appears. The main attraction today is the area between 1.3600 and 1.3650. There is a huge positive gamma here. Such zones usually act as: a brake for momentum, a reversal zone, a place for false breakouts, a liquidity gathering point before expiration. Below the market, there is a very interesting anomaly at the 1.3550 strike, with Abs Gamma of 5.23M. This is the LARGEST gamma volume in the entire profile. This level currently looks like the main option anchor. It is very likely that the market will either chop between 1.3550 and 1.3650 today, or first break out in one direction, and then return back inside the range. Scenario #1 — Long from option support. Buy Limit: 1.35457. Stop: 1.35257. Targets: 1.36012. Logic: bounce back inside the gamma balance. Scenario #2 — Short from overbought. Sell Limit: 1.36512. Stop: 1.36812. Targets: 1.35512. IMPORTANT: If the market settles: above 1.3650 or below 1.3500, then the structure changes sharply. This would mean an exit from the MM stabilization zone. And then the market may start a directional impulsive movement. Until that moment, there is a high probability of sideways movement and breaking out on both sides. CONCLUSION: Today is not a day for "heroic position holding". It is a day for: - quick reactions, - working from levels, - step-by-step fixing, - trading returns to the gamma magnet. The main market magnet right now is: 1.3550–1.3600. It is likely that the main grind will happen around it before the expiration on May 8th.