GBPUSD – Renewed bullish momentum sets the stage for a potential retest of key resistance at 1.3443/44

GBPUSD surged nearly 100 pips on Monday morning, driven by a weaker dollar following the unexpected US credit rating downgrade and the recent EU/UK defense agreement.

The fresh advance is challenging the three-day consolidation range, signaling a potential continuation of the recovery from 1.3139 (May 12 correction low), which has already retraced 76.4% of the 1.3444/1.3139 decline.

Technical indicators are turning positive, with daily moving averages shifting to a bullish setup, rising 14-day momentum approaching positive territory, and strong bullish signals on the weekly chart, further reinforced by a bear-trap below the 1.3163 Fibonacci support.

A sustained break above the 1.3400 area (May 6 lower high/psychological level) would confirm a fresh bullish signal, paving the way for a retest of key resistance at 1.3443/44 (2024/2025 highs), where bulls could encounter strong resistance.

Res: 1.3402; 1.3444; 1.3500; 1.3557
Sup: 1.3360; 1.3307; 1.3250; 1.3200