GBP/USD’s rebound from 1.2099 short term bottom accelerated higher last week and there is no sign of topping yet. Initial bias stays on the upside for 55 D EMA (now at 1.2547) and above. Strong resistance could be seen from 38.2% retracement of 1.3433 to 1.2099 at 1.2609, to limit upside. However, sustained trading above 1.2609 will raise the chance of reversal and target 61.8% retracement at 1.2923). ON the downside, break of 1.2292 support will bring retest of 1.2099 low.
In the bigger picture, rise from 1.0351 (2022 low) should have already completed at 1.3433 (@024 high), and the trend has reversed. Further fall is now expected as long as 1.2810 resistance holds. Deeper decline should be seen to 61.8% retracement of 1.0351 to 1.3433 at 1.1528, even as a corrective move. However, firm break of 1.2810 will dampen this bearish view and bring retest of 1.3433 high instead.
In the long term picture, price actions from 1.0351 (2022 low) are seen as a corrective pattern to the long term down trend from 2.1161 (2007 high) only. Outlook will be neutral at best as long as 1.4248 structural resistance holds, even in case of strong rebound.
 and above. Strong resistance could be seen from 38.2% retracement of 1.3433 to 1.2099 at 1.2609, to limit upside. However, sustained trading above 1.2609 will raise the chance of reversal and target 61.8% retracement at 1.2923). ON the downside, break of 1.2292 support will bring retest of 1.2099 low.){kind=link}