GBP/USD’s extended decline from 1.3631 last week confirmed short term topping. But as a temporary low was formed at 1.3381, initial bias remains neutral this week first. Near term risk will stay on the downside as long as 1.3631 resistance holds. Below 1.3381 will extend the correction to 38.2% retracement of 1.2076 to 1.3631 at 1.3278.
In the bigger picture, up trend from 1.3051 (2022 low) is in progress. Next medium term target is 61.8% projection of 1.0351 to 1.3433 from 1.2099 at 1.4004. Outlook will now stay bullish as long as 55 W EMA (now at 1.2923) holds, even in case of deep pullback.
In the long term picture, for now, price actions from 1.0351 (2022 low) are still seen as a corrective pattern to the long term down trend from 2.1161 (2007 high) only. However, firm break of 1.4248 resistance (38.2% retracement of 2.1161 to 1.0351 at 1.4480) will be a strong sign of long term bullish reversal.
