Last week, GBP/USD saw a rise to 1.3043 before pulling back. This week, the initial bias is neutral as the currency pair looks to consolidate. It is expected that any downside movement will be limited by the support turned resistance level at 1.2859, which could lead to another rally. If the 1.3043 level is broken, we could see a continuation of the upward movement from 1.2298, targeting 1.3173.
Looking at the bigger picture, the corrective pattern from the medium-term top at 1.3141 may have already completed with the three waves down to 1.2298. This scenario is likely to be the most favored as long as the support at 1.2612 holds. A strong break above 1.3141 could lead to a target of 1.4022.
In the long term, as long as the support at 1.2298 remains intact, the overall trend of a rise from the long-term bottom at 1.0351 is expected to continue. However, a decisive break above the structural resistance at 1.4248 is necessary to confirm a bullish trend reversal. Without this breakout, the price action from 1.0351 could be viewed as a consolidation pattern.
It is important for traders and investors to keep an eye on these key levels and developments in the GBP/USD pair to make informed decisions in the forex market. Paying attention to technical analysis and market sentiment can help navigate the potential movements in the currency pair.