FX.co ★ GBP/USD

GBP/USD D-1 TECHNICAL ANALYSIS Hello. Yes, the pound showed strong recovery by closing the gap and continuing upward, which is a clear sign that buyers are currently in control. The fact that the market didn’t just fill the gap but also pushed higher adds weight to the bullish scenario. If we look at the daily structure, the price is now attempting to move along the upper band, which typically indicates strengthening bullish momentum. However, for a reliable continuation signal, it’s still important to see a clear and confident touch of the upper band, followed by the bands opening outward. That would confirm expansion and trend continuation. From the fractal perspective, the price has already broken the nearest upward fractal — this is an important bullish signal. If the price manages to hold above this breakout, the next target becomes 1.35745, which is a key level and could act as the next major objective for buyers. On the downside, the nearest downward fractal is still far from the current price. This means sellers currently lack a clear structure or level to initiate a strong reversal. For any meaningful bearish move, it would be better to wait for a new, closer downward fractal to form. The AO indicator is building in the positive zone, which supports the bullish view. However, momentum is not yet very strong. For a more confident continuation upward, we need to see stronger acceleration in the positive area over the next few days. If instead the indicator starts to weaken, crosses toward zero, and moves into the negative zone, that would be an early warning of a possible trend reversal. Overall, the pound is showing clear bullish strength, but confirmation through momentum and band expansion is still needed for a sustained move higher.