Technical analysis
The GBPUSD pair now has a bullish short-term trading bias after staging a powerful price recovery back above the 1.3700 resistance level.
The MACD indicator is starting to trend higher on the four-hour time frame, and the RSI indicator is now bullish and is also starting to cross above 50 on the mentioned time frame.
What the possible outcomes are
In our most likely scenario, the GBPUSD pair will continue to recover, and eventually head back towards the 1.3900 resistance level after recently finding a meaningful price floor around the 1.3570 level.
Alternatively, the GBPUSD pair could correct back towards the 1.3740 area and then start to sell-off back towards the current monthly low, around the 1.3570 support area.
Key levels
Support 1.3660 1.3570
Resistance 1.3740 1.3900
