FX and Index Watch: Pullback and Continuation Setups
I am keeping an eye on a few setups across GBPUSD, GBPJPY, DXY, and US30. Several have reached levels where I expect a meaningful reaction.
Market Overview
On GBPUSD daily, the recent selloff looks overdone to me. Price is sitting right on a major support cluster from the daily timeframe. I am looking for a pullback in the coming sessions rather than a continuation lower.
GBPJPY daily shows a confluence zone where a rising trendline meets a horizontal structure. I believe the pair will continue its upward trajectory from this area.
DXY on the weekly chart finally showed signs of exhaustion after testing a strong resistance cluster. My expectation is for further retracement in the dollar index.
US30 daily is consolidating in a horizontal range just below the all-time high. That resistance is holding for now. I am watching for a breakout or breakdown, but my bias remains neutral within the range.

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