GBPUSD | Bullish Breakout & Upside Continuation SetupGBP/USDOANDA:GBPUSDYOUSUF-ANALYTICS# GBPUSD | Bullish Breakout & Upside Continuation Setup ### Fundamental View GBPUSD is attempting to extend its recovery as a softer US dollar and declining US Treasury yields provide support for sterling. Both markets opened with sell-side gaps, reflecting early weakness in the dollar and yields. Recent market reporting also points to a pullback in Treasury yields and a rebound in the British pound, although upcoming US economic data and Federal Reserve commentary could quickly change sentiment. ### Technical View On the 1-hour chart, GBPUSD has rebounded strongly after sweeping liquidity near the 1.3140–1.3150 support floor. Price has recovered above the rising trendline and is now trading around 1.3258, with bullish momentum attempting to continue. A sustained move above 1.32760 could open the way toward 1.33045, followed by 1.33111. If buying pressure remains strong, the broader upside target is 1.33610. ### SMC View The sharp rejection from the sell-side liquidity zone suggests buyers stepped in after price swept the recent lows. The recovery above the rising trendline supports a potential bullish continuation scenario. However, resistance around 1.32760 remains an important decision area. A clean breakout and successful retest would strengthen the bullish structure, while rejection could trigger a pullback toward the 1.32062 support zone. ### This Move Is Supported By - A softer US dollar, reducing pressure on GBPUSD. - Declining US Treasury yields, which may weigh on the greenback. - A rebound from the recent sell-side liquidity area. - Price recovery above the rising trendline. - Potential bullish continuation if resistance breaks with sustained momentum. These factors support the bullish scenario, but confirmation from price action remains essential. ### Key Levels to Watch Resistance 1: 1.32760 Resistance 2: 1.33111 Support: 1.32062 Invalidation: 1.31867 Target 1: 1.33045 Target 2: 1.33610 ### Trading Scenario Bullish scenario: If GBPUSD breaks above 1.32760 and holds the breakout, the next potential objective is 1.33045. A sustained move above 1.33111 could strengthen the continuation setup toward 1.33610. Bearish risk: If price fails at resistance and falls below 1.32062, the recovery may weaken. A decisive break below 1.31867 would invalidate the current bullish setup and increase the risk of renewed downside. ### Risk Management - Wait for a confirmed breakout or successful retest before considering a trade. - Define the entry, stop-loss, and position size in advance. - Treat 1.31867 as the stated technical invalidation level for this setup. - Avoid chasing price after a sharp move, and account for volatility around major economic releases. - Remember that gaps can fill or extend; they do not guarantee a particular direction. ### Professional Insights GBPUSD is showing signs of short-term recovery, supported by dollar weakness and lower Treasury yields. The key test is whether buyers can clear 1.32760 and sustain momentum toward 1.33111 and 1.33610. Monitor the dollar, Treasury yields, and upcoming US data for confirmation. ### Disclaimer This analysis is for educational purposes only and does not constitute financial advice. All scenarios are conditional. Always apply disciplined risk management and make trading decisions based on your own assessment.