GBP/USD’s break of 1.3274 resistance suggests short term bottoming at 1.3135, on bullish divergence condition in 4H MACD. Intraday bias is back on the upside for 38.2% retracement of 1.3675 to 1.3135 at 1.3341. Rejection by this resistance, followed by break of 1.3230 minor support will retain near term bearishness, and bring retest of 1.3135 low. However, decisive break of 1.3341 will raise the trend of bullish reversal and target 61.8% retracement at 1.3469 next.
In the bigger picture, price actions from 1.3867 are a corrective pattern within the broader up trend from 1.0351 (2022 low). With 1.3008 support intact, medium term bullishness is maintained and break of 1.3867 is in favor for a later stage, towards 1.4248 key resistance (2021 high). However, firm break of 1.3008 will at least bring deeper fall to 38.2% retracement of 1.0351 to 1.3867 at 1.2524, with increased risk of bearish reversal.
