The GBP/USD pair’s rise has resumed from 1.3158 last week but a temporary top is expected to form after reaching 1.3657. Initial bias turned neutral this week for consolidation first. Further rise is expected as long as the price 1.3453 remains stable. Above 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.
