The GBP/USD pair is showing signs of a bullish reversal after breaking above the resistance channel near the 1.3400 level. This breakout indicates that a higher degree corrective phase is now underway.
From an Elliott wave perspective, the pair appears to be developing a triple recovery within wave B (blue). The current upward move is likely to be part of sub-wave A, which may extend beyond the 1.3600 area. Even a move within that zone will still represent only the first phase of a broader corrective structure.
Looking ahead, wave B may decline in the near term. However, any downtrend would ideally find support in the 1.3400-1.3450 area. As long as the price remains above this support zone, the bullish corrective outlook remains intact, with the potential for an upside trend in the following parts of the pattern.
