GBP/USD – Major bulls may pause before continuing their rally

GBP/USD pulled back from its highest level since March 2022 on Monday, signaling that bulls might take a breather after a 3.6% rally over the past two weeks and a strong bullish surge last Friday (nearly a 1% daily gain).

Overbought daily indicators suggest profit-taking is underway, but any correction is expected to be limited given the strength of the current uptrend.

The 1.3080 level offers initial support, with deeper dips likely to find strong footing around the 1.3000 zone (38.2% Fibonacci retracement of the 1.2664/1.3229 rally, 10-day moving average, and psychological level), indicating a healthy correction before the next leg higher, with a potential move towards 1.3328 (76.4% Fibonacci retracement of the 1.4249/1.0348 decline).

Res: 1.3229; 1.3279; 1.3300; 1.3328
Sup: 1.3129; 1.3044; 1.3000; 1.2947