GBPUSD H4: Correction Before the Next Bullish ExpansionHi!
GBPUSD is currently transitioning into a short-term corrective phase after showing signs of trend exhaustion near the upper boundary of the ascending channel. Following the strong impulsive rally, price failed to sustain momentum at the channel top and has since reacted lower, signaling that buyers are stepping back temporarily.
The recent decline has brought price back below the internal trendline and short-term structure, with prior support now acting as near-term resistance. This shift suggests that any rebound toward the 1.3650–1.3700 area is more likely to be sold into, rather than developing into a fresh impulsive move higher.
From a structural perspective, the broader trend remains bullish, but the current price action favors further downside testing first. I expect GBPUSD to continue correcting toward the 1.3550–1.3600 demand zone, where previous accumulation and channel support converge. This area is key to watch for signs of stabilization or bullish reaction.
As long as price holds above the lower boundary of the ascending channel, this pullback should be viewed as a healthy retracement within a broader uptrend, not a reversal. A successful defense of support could open the door for the next bullish leg, targeting 1.3750 initially, and potentially extending higher as momentum rebuilds.
In summary, short-term bias is corrective to bearish, while medium-term structure remains constructive. I’m treating rallies as corrective until price reclaims broken structure — patience around support will be critical for the next directional move.
