Serj Panchuk
⬤ GBP/USD has found its footing after getting turned away just below 1.3725, settling into a consolidation phase above the 1.3630–1.3640 support area. The pair pulled back from recent highs but hasn't broken down, suggesting buyers are still willing to step in rather than heading for the exits.
⬤ The bigger picture remains constructive—price is still trading above its rising moving averages, and the recent rally only stalled when it hit descending resistance near 1.3725. That's where sellers showed up briefly, but the downside has been pretty contained so far. The chart shows a recovery structure that's still intact, with bulls defending the support zone and keeping the door open for another leg higher.
⬤ What happens next really depends on which side breaks first. If GBP/USD pushes through 1.3725 and holds it, the next target sits around 1.3785–1.3790, with a bullish flag projection pointing even higher toward 1.3875 if the dollar keeps weakening. On the flip side, a drop below 1.3630–1.3640 would shift the focus lower and likely trigger a 50–60 pip slide in line with recent swings.
⬤ This matters because the pound is sitting at a technical crossroads. The recovery phase has been strong, but now it needs a clear directional push. How price behaves around these levels could shape short-term trends not just for cable, but across the broader FX market as dollar dynamics continue to drive momentum.
Serj Panchuk
