GBP/USD rebounded to 1.3587 last week but reversed from there. Downside is held above 1.3363 support so far. Initial bias stays neutral this week first. On the upside, break of 1.3587 will target a retest on 1.3787 high. However, sustained break of 1.3363 will argue that it’s already correcting the whole rally from 1.2099, and target 1.3206 resistance turned support.
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 1.3032) 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.
