GBP/USD advanced to 1.3502 last week before retreating. The near-term bias remains neutral at the start of this week. Further upside is favored as long as the 1.3271 support level holds. A break above 1.3502 would extend the rally from 1.3135 toward the 1.3675 resistance zone. Conversely, a decisive break below 1.3271 would indicate that the rebound has run its course, setting up a retest of the 1.3135 low.
In the broader context, price action from 1.3867 forms a corrective pattern within the larger uptrend originating from the 1.0351 low in 2022. With the 1.3008 support level intact, the medium-term bullish bias is maintained, and a break above 1.3867 would support further gains toward the 1.4248 key resistance level, the 2021 high. However, a firm break below 1.3008 could accelerate declines toward the 38.2% Fibonacci retracement of the 1.0351-to-1.3867 move at 1.2524, increasing the risk of a bearish reversal.
Over the long term, the outlook remains bearish as long as the 1.4248/4480 resistance zone—the 38.2% retracement of the 2.1161-to-1.0351 decline at 1.4480—holds. Under this view, price action from 1.0351 is interpreted as a corrective pattern within the broader downtrend from the 2.1161 high recorded in 2007. Nevertheless, a decisive break above 1.4248/4480 would serve as a strong indication of a long-term bullish reversal.
