- July 13, 2026
- Posted by: EWGFX
- Category: Technical analysis
GBPUSD was shorted from the daily resistance zone around 1.34516 after price rallied into overhead supply and failed to reclaim the area cleanly. The idea was to sell the rejection, not chase the move after it had already extended. Higher-timeframe structure still leaned bearish, and the setup offered a clear invalidation above resistance with room
toward the next support zone around 1.31515.
Fundamentally, the backdrop was mixed rather than cleanly USD-bullish. It was reported that the sterling had climbed to a one-month high and traded around $1.345 on 10 July as markets weighed rate-hike expectations, supported by the Bank of England’s tightening stance, stronger UK growth data, easing political uncertainty, and foreign investment flows. At the same time, U.S. jobless claims were still pointing to a stable labor market, and the Fed had recently highlighted inflation risks, which kept the dollar supported enough to justify a technical short at resistance.
Trade Plan
Bias: Bearish
Entry: Daily resistance retest / rejection
Invalidation: Clean hold above 1.34516
Target: Next daily support near 1.31515
Style: Daily chart price action, support and resistance, set-and-forget
Why the trade made sense before the weekend: I was not trying to predict a collapse in GBPUSD. I was taking a defined technical short from a level where price had already shown weakness, with risk clearly controlled and no need to force entries after the move had developed.