The pair has been trading within a Channel Down since April 30. Today it is rebounding after coming the closest to the bottom (Lower Lows trend-line) of the Channel Down since July 20. This is a short-term buy signal on its own with a 1.3750 Target (the short-term Resistance).
On a more longer term perspective though, we can see a similar fractal developing as in April-May 2020 (green shapes/ Fractal (A) and (B)). If it weren't for the March 2020 COVID market crash, then Fractal (A) would have also traded in the extension of a Channel Down, as Fractal (B) does. That fractal was the bottom of that pattern and GBPUSD started a 12 month bullish trend then. So if the current Channel Down breaks to the upside, our firm's thesis is that the pair can extend the rise to at least the 2.0 Fibonacci extension (1.4400) before the next major correction.
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For me, it is unlikely to go until 1.365. Maybe retrace around 1.36 before going to 1.332
Wolf_of_Walton
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@Zerg_Spirit, I tend to agree with you. I see that 1.36 resistance will probably get rejected at its first attempt to break through. I definitely appreciate your analysis though @TradingShot