GBP/USD’s fall from 1.3433 attempted to resume last week by breaching 1.2486, but quickly recovered after dipping to 1.2474. Initial bias is turned neutral this week for consolidations. Outlook will stay bearish as long as 1.2810 resistance holds. Break of 1.2474 will target 1.2298 cluster support zone.
In the bigger picture, price actions from 1.3433 medium term are seen as correcting whole up trend from 1.0351 (2022 low). Deeper decline could be seen to 38.2% retracement of 1.0351 to 1.3433 at 1.2256, which is close to 1.2298 structural support. But strong support is expected there to bring rebound to extend the corrective pattern.
In the long term picture, as long as 1.2298 support holds, rise from 1.0351 long term bottom is expected to continue. But in any case, outlook is neutral at best as long as 1.4248 structural resistance holds.
