The GBPUSD pair began the day with a yearly high during the early Asian session. However, a reversal occurred after an Israeli attack on Iran, prompting investors to seek the US dollar as a safe haven. This shift pushed the GBPUSD below the 100- and 200-hour moving averages, both around 1.3544. It found support in the swing area between 1.3506 and 1.3517, where buyers often show interest. As the early U.S. session progressed, this support held firm, indicating its significance. For the bearish trend to continue, the pair would need to drop below this support. The pair has since bounced back, testing the upper resistance zone from 1.3580 to 1.35919. If it breaks through this resistance, there may be a chance to retest recent highs. However, failing to exceed this level would likely keep the pair within a consolidation range. Key technical levels to watch are resistance at 1.3580–1.35919 and 1.36158, with a recent peak at 1.36365. Support levels include 1.3544 for the 100/200-hour moving averages and the swing area of 1.3506–1.3517. In simpler terms, we are observing a cautious response to geopolitical risks. The British pound reached its yearly high, but sellers quickly entered the market as fresh conflict headlines increased demand for the US dollar, a classic safe asset in uncertain times. When the pair fell below the 100- and 200-hour moving averages near 1.3544, short-term and medium-term traders began changing their positions. Technical levels like these often serve as soft boundaries when there’s no fresh news, and breaking through them usually attracts more sellers. At the swing zone of 1.3506 to 1.3517, we have seen consistent buying in recent weeks, and the market bounced back in this area again. Buyers tend to return to levels where previous reversals occurred, which is what we’ve witnessed. This support held during the early U.S. session, indicating a strong defense of that area. What makes this trading situation intriguing is the hesitation just below 1.3592. This level has been tested several times but hasn’t been decisively breached. We find ourselves in a scenario where the market is stuck between solid resistance and dependable support, a classic situation often leading to more drastic movements once one side fails. For short-term traders, especially those dealing in options on major FX pairs, this tight range between support and resistance presents an opportunity. The more a resistance level is pressed, the higher the chance it will break. If the pair can settle above 1.3592, it could lead to a rally toward the high of 1.3636, possibly driven by momentum or stop orders. On the other hand, if the pair fails again at this resistance, we may continue to see range-bound trading. This isn’t necessarily negative; range traders can utilize mean reversion strategies within these clear boundaries. However, a sharp drop below the swing zone would change the narrative. A close under 1.3506 could lead to increased selling and a push toward new lows. It’s crucial to manage positions carefully near risk zones and to quickly reassess our bias if momentum shifts. With news having a big impact this week, a systematic approach to trades, stops, and entry points is vital. The market structure shows signs that it’s gearing up for a decisive move. Whether this will be an upward break or new selling largely depends on upcoming events and how these technical levels hold up under pressure. Keep an eye on 1.3592 for possible breakthroughs and on 1.3506 if sellers regain control. Everything happening in between is just noise until one of these levels breaks.

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