Saturday, September 12, 2026

GBP/USD continued its range-bound trading above the 1.3473 level last week, and the overall outlook remains unchanged. The initial bias for this week remains neutral. On the downside, a sustained break below the 55-day Exponential Moving Average (EMA), currently situated at 1.3484, would signal that the entire rebound from the 1.3139 low has concluded. Such a move would expose the key support level at 1.3272 initially. Conversely, on the upside, a decisive break of the 1.3601 resistance level is required to rekindle bullish momentum, potentially resuming the rally from 1.3139 toward the 1.3675 threshold.

In the broader perspective, the price action from the 1.3867 peak represents a corrective phase within the larger uptrend originating from the 1.0351 low of 2022. As long as the 1.3008 support level remains intact, the medium-term bullish outlook is preserved, with a break above 1.3867 favored in the longer term to test the key resistance at 1.4248 (the 2021 high). However, a firm breakdown below 1.3008 would risk a deeper correction, potentially reaching the 38.2% Fibonacci retracement of the 1.0351 to 1.3867 range at 1.2524, which would heighten the risk of a more significant bearish reversal.

Looking at the long-term picture, the overall outlook remains bearish as long as the 1.4248/1.4480 resistance zone holds, which aligns with the 38.2% retracement of the decline from the 2.1161 peak in 2007 to the 1.0351 low. From this perspective, the price action since 1.0351 is viewed merely as a corrective rally within the long-term downtrend. Nevertheless, a decisive, weekly close above the 1.4248/1.4480 zone would serve as a strong technical signal of a major long-term bullish reversal.

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