GBP/USD Just Hit a Major Institutional Demand ZoneGBP/USDOANDA:GBPUSDEdgeTradingJourneyGBP/USD is currently trading inside one of the most important demand zones visible on the daily timeframe, following an aggressive selloff that swept liquidity below previous lows. From a positioning perspective, the latest COT report reveals a strong divergence between speculative traders and commercial hedgers. Non-commercial traders remain heavily net-short the British Pound, while commercial participants have significantly increased their long exposure. Historically, this type of positioning often appears near medium-term turning points. At the same time, the U.S. Dollar Index does not show the level of bullish conviction typically associated with a sustained GBP/USD bearish trend. Open interest is increasing, but speculative positioning remains largely neutral, suggesting that current dollar strength may be corrective rather than the beginning of a major trend expansion. Retail sentiment adds another interesting layer. Around 57% of traders are currently long GBP/USD. While this provides a mild contrarian bearish signal, positioning is far from extreme and does not invalidate a potential recovery scenario. Technically, price has completed a liquidity sweep into a major daily demand zone around 1.3150–1.3230. This area has already generated an initial reaction and coincides with institutional buying interest. Above current price, a large Daily Fair Value Gap remains unfilled between 1.3330 and 1.3380, creating a natural magnet for a corrective rebound. My preferred scenario remains a recovery toward the Daily FVG, with 1.3360 acting as the first major upside objective. If buyers can reclaim momentum, further upside toward 1.3440 and potentially 1.3600 becomes achievable. However, a daily close below 1.3150 would invalidate the bullish recovery thesis and expose GBP/USD to deeper downside toward 1.3050 and potentially 1.2950.