The GBP/USD pair remained in a trading range below 1.3657 last week and the outlook was unchanged. Initial bias remains neutral on consolidation, further upside is expected with support at 1.3453 remaining intact. On the upside, a break of 1.3657 will target 61.8% from 1.3158 to 1.3598 from 1.3453 at 1.3725 first. A strong breakout there will target a retest of the high price 1.3867.
In the bigger picture, the current development suggests that price action from 1.3867 is merely a corrective pattern within the broader uptrend from 1.0351 (2022 low). With support holding at 1.3008, the upward trend continues in the medium term and a break of 1.3867 is likely for a later stage, towards the main resistance 1.4248 (2021 high).
In the longer term picture, as long as the 1.4248/4480 resistance area holds (38.2% retracement from 2.1161 to 1.0351 at 1.4480), the long term outlook will remain bearish. That is, price movements from 1.0351 are considered a corrective pattern for the downtrend from 2.1161 (2007 high) only. However, a decisive break of 1.4248/4480 would be a strong signal of a long-term bullish reversal.
