The GBPUSD extended higher today, reaching a new high for the year at 1.3622—the highest level since February 2022. This move also pushed the pair above last week’s high at 1.36158, signaling an attempt to continue the bullish trend.

However, the breakout was short-lived. Momentum quickly faded, and the price reversed lower, failing to hold above the highs. The retreat has taken the pair back into a familiar swing area between 1.35804 and 1.35919. This zone, defined by a series of past swing highs, now serves as a critical bias-defining level.

With the failed breakout fresh in traders’ minds, a move back below this area could trigger further downside pressure. It would suggest the earlier move was a bull trap and may open the door toward deeper corrective selling.

Conversely, if buyers can hold the line above this support zone, the door remains open for another test of the highs at 1.36158 and 1.3622. Holding above the swing area keeps the bullish bias intact, at least in the short term.

Later this year,
ForexLive.com
is evolving into
investingLive.com, a new destination for intelligent market updates and smarter
decision-making for investors and traders alike.