I initially considered the potential for continued growth in the GBPUSD pair, but I must admit I did not anticipate the sheer momentum the pound exhibited on Wednesday. I watched as it decisively broke through every presumed barrier and surged significantly higher, which genuinely took me by surprise. I then observed the subsequent pullback on Thursday, which felt like a natural consolidation after such a forceful move. Interestingly, I had switched to a different trading account earlier in the week, and there I found that I had previously highlighted the 1.3385 level as a key technical point. I realized that this exact level was where the corrective pullback from Wednesday’s peak found a temporary footing yesterday, which confirmed its immediate importance. I now think this same level will function as a critical barrier, specifically as a cluster of selling stops for those who positioned for a deeper decline. I am noticing that we have more and more sellers gathering around these higher levels, attempting to fade the rally, which often creates fuel for an upward move if their stops are triggered. Therefore, I believe the pair could very well continue its rise, as the underlying buying pressure seems to be absorbing these selling attempts. I would, consequently, expect a continuation of buying activity along the newly formed ascending channel that has developed from the recent lows {"data-align":"none","data-size":"large","data-tempid":"temp_5131095_1764899307277_623"} I am focusing my attention on the former resistance zone, which I see around the 1.3275 area, as I believe it could now act as a supportive platform for the price. I would, therefore, expect to see a possible decline into this area to retest that newfound support, which would offer a more favorable risk-reward scenario. I am planning to look for opportunities to try buying within that region, as I see it as a potential launchpad for the next leg higher. I would set my initial target on such a trade at a break above the 1.3385 resistance, as I aim to capitalize on the momentum from those seller stops being triggered at that level. I must emphasize, however, that I am feeling a degree of caution today, as it is the first Friday of the month when the crucial U.S. Non-Farm Payrolls report is typically released. I am somewhat perplexed because I do not have this event listed on my current economic calendar, which makes me uneasy. I have to be exceptionally careful with any purchases I consider today, as an unanticipated high-impact news release could create violent, unpredictable volatility. I am wondering if perhaps there was an oversight and the event was simply forgotten on this particular calendar, or if there is some unusual scheduling this month. I know from experience that I should never underestimate the market’s potential for surprise, especially around such fundamental pillars. I will therefore be implementing stricter risk management on any positions, ensuring my stops are secure and my size is modest, because I ultimately believe that prudence is paramount when there is a shadow of uncertainty over the trading session. I am balancing my technical outlook, which seems constructive, with this fundamental ambiguity, and I intend to proceed with a strategy that respects both the clear chart structure and the hidden potential for a news-driven shock.
