FX.co ★ GBP/USD

I recognize that my thoughts from yesterday were validated by the GBPUSD chart because I saw how the price behaved after the false breakout of 1.3525 and how it avoided a proper test of the 1.3500 level before pushing higher with confidence. I interpret this movement as a deliberate liquidity grab where I see how the market cleared weak positions before continuing the upward move. I observe that, according to the Reaction Levels I follow, there were no meaningful resistance barriers above except the zone of 1.3681–1.3688, and I understand that this clean space above price created the conditions for a smooth bullish advance. I realize that this was the exact area where the price was logically drawn, and I acknowledge that this was the zone where I would have comfortably held buy positions if I had managed to enter the market without exposing myself to unnecessary risk. I accept that my entry timing did not allow me to participate in this movement as safely as I prefer, and I use this observation to refine my patience and discipline. I identify this upper zone as a technically justified location for a pending sell limit order for Monday, February 9th, because I expect the market to react there after such an impulsive rise. I prepare myself mentally for the possibility that price may retrace after reaching this supply area, and I see this as an opportunity rather than a mistake. I also consider the scenario where the price pulls back toward 1.3525 or 1.3545, and I evaluate this region as a potential cautious buying opportunity if the market structure remains supportive. I remind myself that these levels represent the last rally base and I expect buyers to defend this area if the bullish momentum is still valid. I stay flexible in my thinking because I know the market can choose either continuation or correction, and I rely on my reaction to price behavior rather than predictions. I focus on preserving capital and executing trades only when I see confirmation, and I use these reflections to improve my planning for the upcoming trading session.

I’m pleased with how GBPUSD behaved this week because I followed my plan with discipline and it rewarded me with a solid 15% gain, and I deliberately chose not to trade on Friday so I could preserve both profit and psychological balance. I rely on a simple but consistent strategy where I wait for a corrective pullback after a strong impulse and then I enter in the direction of that impulse, and I saw this pattern play out very clearly in the recent movement. I watched the pair reach the full margin target zone of 1.3547–1.3515 and I locked in my profit there because I recognized it as a technically justified area for reaction. I observe that the price is trading below the fast moving average and I interpret this as a sign of underlying weakness rather than strength, while I also notice that the price is only hovering near the long-term moving average, which I read as a correction rather than a genuine reversal. I look at the RSI sitting in the neutral 45–50 range and I understand this as a lack of bullish momentum and a visible decrease in selling pressure rather than any meaningful buying interest. I study the MACD below the zero line and, even though I see the histogram contracting, I still interpret this as confirmation that the broader bearish sentiment remains intact. I identify 1.3423 as the next logical sell target because I see it as the next area where price is likely to be attracted if sellers regain control. I mark the current sell zone between 1.3650 and 1.3692 and I prepare myself mentally to look for short opportunities there if price retraces. I remain cautious because I know that a daily close above 1.3650 would invalidate my bearish view and I would then reassess for a possible upward trend scenario.