GBP/USD | 72% of Traders Are ShortGBP/USDOANDA:GBPUSDEdgeTradingJourneyGBPUSD continues to recover after breaking above the descending channel, but price is now approaching a significant higher-timeframe supply area. Although many traders are already looking for short opportunities, I believe the current market structure deserves a more patient approach. Market Structure The daily chart has shifted from a clear bearish trend into a short-term bullish correction. What I'm currently seeing: • Break of the descending channel. • Series of Higher Highs and Higher Lows. • Strong bullish momentum. • Price approaching a major Daily supply zone around 1.3410–1.3460. Sentiment Retail positioning remains heavily bearish. • 72% of traders are currently short GBPUSD. • Only 28% are long. Historically, extreme retail positioning often acts as a contrarian signal. If buyers continue pushing higher, a short squeeze toward the next liquidity area would not surprise me. COT Report The latest Commitment of Traders report still shows speculative traders net short on the British Pound. However, the pace of bearish positioning is slowing as some short exposure is being reduced. This doesn't confirm a bullish trend yet, but it does suggest that downside momentum is becoming less aggressive. Seasonality Seasonality also supports a constructive outlook. Historically, July has been one of the strongest months for GBPUSD across multiple historical samples. While seasonality should never be traded alone, it currently aligns with the improving technical structure. My Plan I'm watching two possible scenarios. Bullish Scenario If buyers manage to break above the current supply zone, I expect price to target higher liquidity around 1.3500–1.3550 before any meaningful reversal develops. Bearish Scenario If price shows clear rejection inside the supply area, I'll wait for bearish confirmation before considering short positions.