Chartbook: Chart GBP/USD: Corrective pullback into the coming weeks

The anticipated continuation of September 2022 gains has tested above the 1.3785~ year high of 1 July 2025 to post a fresh 2026 year high at 1.3865/70.

Subsequent selling interest has given way to a break below 1.3500 to reach strong support at the 1.3200 congestion/Fibonacci retracement.

Both weekly stochastics and the weekly Tension Indicator are bearish, highlighting room for a break beneath here, and continuation of January losses towards critical support at the 1.2985 retracement and congestion around 1.3000.

Already oversold weekly stochastics could limit any initial tests of here in consolidation. But negative monthly studies suggest risk of a further break and a deeper correction of multi-month gains.

Meanwhile, resistance is at congestion around 1.3500 and extends to the 1.3785 - 1.3865 highs.

Monthly studies are turning lower, suggesting any immediate tests of this range should be limited in fresh consolidation. A break above here, however, will improve sentiment and extend September 2022 gains towards further congestion around 1.4000 and critical resistance within the 1.4250 year high of June 2021 and 1.4375 multi-year high of April 2018.

From a longer-term perspective, multi-month studies are rising,

suggesting the current pullback is viewed as corrective.

However, a close above 1.4375 would improve sentiment and open up a test of the 1.4500 multi-year retracement.