At the moment, GBP has bounced off the margin zone and completed roughly a 1.5 margin cycle to the upside.
Right now, I’m expecting a correction back toward the 1/2 margin zone from the recent high. This area also aligns with a relatively large options strike around 1.3500.
For now, I’m watching for a move into that zone, and the key will be how price behaves there — whether we get a reaction as resistance. If the zone is taken out, the margin cycle would likely shift to the downside.
So far, we are clearly following the script. At the moment, it is necessary to put a stop at the extreme or move to breakeven. Since we are scalping for now, and the main thing now is to look at the termination at the American trading session.
