Sterling is gathering strength…the next explosion is coming

Over the medium term, GBP continues its upward trend and despite the decline in the strong supply area above 206.70 – 207.20, the pair is still able to find excellent support in the demand area:

204.50 – 204.90

Since then, a clear rebound has begun, and current price action confirms that buyers still have the strength, but there is still no new upside breakout.

Price is now moving sideways near the middle of the range, between strong demand below and strong offers above…which suggests the market is entering a consolidation phase before a strong move.

🟢 Purchase scenarios (strongest trend):

The best buying opportunities come from retesting demand areas:

Buying zone: 204.50 – 204.90

Stop Loss: Below 204.20

Target 1: 205.80

Target 2: 206.60

Target 3: 207.10

RR is very good

This situation is in line with the general trend.

🔴Sales scenario (only if the quote fails):

The sell here is corrective and not in line with the trend, so it must be confirmed:

Sell ​​zone: 206.70 – 207.20

Stop loss: above 207.40

Target 1: 205.80

Target 2: 205.20

But please remember:
❗ Selling here is going against the general trend, so a clear rejection signal is required.

💡Conclusion:

✔ The overall trend is still upward
✔ Price is in a consolidation phase before a strong move
✔ Best case scenario = buy from areas with low demand
✔ Only sell if the price is lower than the strong offer above

The GBPJPY pair is clearly gearing up for a launch…keep an eye on the areas above and below.

sign:

Engineering/Taher Elmonier – TPS College