I observed that the pound made a very nice move yesterday, as I noted its action in retesting the 1.34 level before it rallied the GBPUSD pair quite effectively. I am currently seeing the British pound trading again at the Vidnoye level, which I find particularly intriguing because I believe we could genuinely go either up or down from this juncture. I would interpret a potential downward move as being either a simple correction or a deeper push toward the 1.3150 area, where I remember there was an interesting market opening previously. However, I must admit that the asset itself isn’t appearing very informative to me in terms of clear trading ideas at this precise moment, so I am maintaining a patient perspective. Consequently, I am not actively looking for any trade setups at the moment, as I prefer to wait for a more defined signal before I commit my capital to any direction in this pair
For those traders who I know prefer short positions, I might personally consider trying to use the current range if I were inclined to trade, but I immediately recognize that setting a protective stop is more difficult under these conditions. I think that placing a stop at least beyond the 1.3523-1.3525 range is a good technical starting point for such a scenario, as I would want to account for any false breakout above that recent resistance. Nevertheless, I do not like that wide stop-loss parameter for my own risk management, as I feel it exposes me to a larger potential loss than I am comfortable with right now. I prefer much shorter stops in the current environment, as I believe volatility can quickly negate a good entry if the stop is too distant. Therefore, I would rather patiently wait for a rally toward the nearest sell zone, where I can structure a trade with a tighter, more disciplined stop that aligns with my personal risk tolerance. I find that this approach allows me to enter with greater confidence, as I am not guessing at the bottom of a range but instead looking for a confirmed rejection at a known level of supply. I plan to monitor the price action closely, and I will only engage when my specific conditions are met, as I have learned that preserving capital is paramount when the market is not offering a clear, high-probability opportunity.
