GBP/USD has extended the rebound from 1.5645 following bullish resolution to the hourly trend channel.

The pullback from the 1.5929 swing high was always seen as a correction of the larger advance from the 1.5235 January swing low, with the rebound from 1.5645 suggesting that the correction is complete.

While 1.5645 holds the risk is seen to the upside for an attack on 1.5916/29 (200-day moving average/swing high) ahead of psychological 1.6000 then overhead resistance at 1.6096/1.6167 as the next leg higher unfolds.

Loss of 1.5645 in the meantime would again risk a test of 1.5500/1.5582 (psychological/50% retrace) before a base can form, while settlement below 1.5500 would suggest that the 1.5235/1.5929 rally was a completed bear market bounce, shifting odds in favour of an attack on the 1.5235 swing low.

Daily Technical Report