GBP/USD accelerated higher after the failure to sustain the downside break of the 1.5645 support level, trapped bears fuelling a powerful short squeeze.
The velocity of the move/re-capture of 1.5834 suggests that an important reaction low has formed at 1.5603, setting the stage for a revival of the 1.5235 advance through 1.5993 for the 1.6167 reaction high initially.
Settlement back under 1.5700 from here would neutralise, while loss of 1.5603 would be negative risking a return towards 1.5500 initially in a deeper retracement of the 1.5235 advance.
Daily Technical Report
