GBPUSD is currently putting the final touches on a corrective dip and quietly building the case for a bullish revival that could soon shift the mood across the board.
Taking a closer look at the chart, we can see the move unfolding in three clear stages. The first was a sharp rally that kicked off between July 13 and 15, pushing the pair to a peak just under 1.35600—a solid statement from bulls. This was followed by a steady, drawn-out pullback that lasted through the rest of the week, eventually bottoming out on July 17 near 1.34240. Now, with Monday, July 20, in play, it looks like we might be entering a third phase: GBPUSD has been forming rising highs and lows, which is typically one of the first clues that a local uptrend is gaining traction.
Right now, the price is holding steady at 1.34619—a level that has proven to be a real market magnet. It served as a launchpad during the July 16 sell-off and flipped into a stubborn ceiling during last Friday's session. This makes it as much a psychological frontier as a technical crossroads. The volume picture only thickens the plot. The loudest spike took place on July 14 during the initial push higher. However, as the pair slid lower, participation faded to a whisper. Today, with an uptick unfolding on relatively quiet, steady volume, the message from investors is clear: sellers are not supporting this move, and buyers are quietly stacking the odds in their favor, one tick at a time.
Looking ahead, the chart lays out two principal roadmaps for the sessions to come:
Bullish path (the preferred narrative). If buyers can anchor the price above 1.34619, they will challenge the first meaningful barrier in the 1.34790–1.34810 range. Breaking through this zone would bring 1.35020 and 1.35310 into focus, with the ultimate medium-term goal being to reach the 1.35590 threshold again.
Bearish path (the fallback scenario). If the current probe above 1.34619 proves to be a mirage—with a daily close slipping back below—bears will reassert control. Their immediate objective lies at 1.34420. A breach there would likely pave the way for a retest of the recent floor (1.34220–1.34240). This range has historically attracted significant buy-side interest.
All things considered, the scales tilt slightly in favor of bulls. Bears had their chance to cement control at Friday's bottoms, but they let it slip away. This missed opportunity may be the opening the upside needs to write the next chapter.
The final recommendation is to buy GBPUSD when it breaks through 1.34680. Lock in profits at 1.34800. Place Stop Loss at 1.34500.
Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow you to enter a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
