GBPUSD Is Developing Corrective Structure With Upside Extension Potential

GBPUSD (Cable) has broken above key channel resistance around the 1.3400 level, signaling a shift in short-term momentum and suggesting that a higher-degree corrective phase is now in progress. This breakout reduces immediate downside pressure and supports the view that the market is transitioning into a broader recovery structure rather than continuing its prior decline.

From a structural perspective, price action appears to be developing a three-wave corrective sequence within a larger wave B (blue). The initial upward movement can be interpreted as subwave A, which has pushed price beyond the prior resistance zone and established early signs of strength. This type of move often marks the beginning of a corrective rally rather than a full trend reversal.

Following this advance, a temporary retracement in subwave B is expected. This pullback would likely serve to retest the breakout area, with the 1.3400–1.3450 zone acting as the key support region. Holding above this area is important for maintaining the bullish corrective structure and confirming that the breakout was valid.

If support holds, the market could then resume higher in subwave C, potentially extending toward the 1.3600 region. This level represents the next significant area of resistance where price may encounter stronger selling pressure and where the corrective structure could begin to mature.

Overall, the outlook remains cautiously bullish in the short term, with the current move viewed as a corrective recovery phase rather than a confirmed trend reversal. The behavior around the 1.3400–1.3450 support zone will be crucial in determining whether further upside toward 1.3600 unfolds or whether the breakout begins to fail.