GBP/USD extended its climb from 1.3139 after clearing 1.3557 decisively, keeping the near-term bias tilted higher toward 1.3690. The broader picture stays constructive above 1.3008 support, while the long-term trend remains bearish unless price clears the 1.4248/4480 zone.
GBP/USD's rise from 1.3139 resumed as the pair broke through 1.3557 decisively last week. That move keeps the initial bias on the upside this week, pointing toward a 100% projection target at 1.3690, measured from the 1.3139-to-1.3557 leg projected from 1.3272.
A firm break above 1.3690 would open the door to a retest of the 1.3867 high. On the downside, however, a drop below 1.3593 minor support would turn the intraday bias neutral again first.
Medium-term trend stays bullish above 1.3008
In the bigger picture, price action since the 1.3867 high forms a corrective pattern within the broader uptrend that started from 1.0351, the 2022 low. As long as 1.3008 support holds, medium-term bullishness stays intact. A break of 1.3867 would then favor an eventual move toward the 1.4248 key resistance from the 2021 high.
A firm break of 1.3008, though, would at least bring a deeper fall toward the 38.2% retracement of the 1.0351-to-1.3867 range at 1.2524, raising the risk of a bearish reversal.
Long-term outlook hinges on the 1.4248/4480 zone
The long-term outlook stays bearish as long as the 1.4248/4480 resistance zone holds, a level derived from the 38.2% retracement of the move from 2.1161 to 1.0351. Under that view, the advance from 1.0351 counts only as a corrective pattern against the downtrend from the 2007 high at 2.1161. A decisive break of the 1.4248/4480 zone, though, would mark a strong signal of a long-term bullish reversal.
Source: ActionForex
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