FX.co ★ bridget.franecki | TST as the Foundation for Medium-term Trading

On GBP/USD, the situation is slightly different, but the essence remains the same. Let's first look at the cash market, which already has its own fans here. And it turns out that on Wednesday, people in the market got excited, and we saw a good breakout beyond all possible limits. I see this as a potential difficulty in moving higher. However, it's important to understand that the scenario will change with the new contract on Monday morning. I will keep an eye on the 1.3205 area as a potential turning point.

Regarding the monthly chart analysis, we can interpret it similarly to what we discussed about EUR/USD. Here, we also see compression of selling levels, but we can't say the same about buying levels. This increases the likelihood of a decline, especially since we have already touched 1.3384 - the first selling level. This means we could start moving down either from Monday following the red path, or later, say on Wednesday following the blue path. That's how it seems and what we are waiting for.