GBPUSD has not surpassed 1.2665, its last week's high, and has reversed lower through 1.2610 on Tuesday late in the Asian session. The currency pair was vulnerable to a bearish turn. It seems that a near-term top is in place. Bears are carving a potential Engulfing Bearish candlestick pattern on the daily chart as they prepare to be back in control.
GBPUSD seems to have carved a meaningful upswing between 1.2150 and 1.2665. Also, the initial resistance around 1.2640-50 was taken out at ease as bulls registered themselves. Ideally, the above boundary should be retraced up to 1.2350 before bulls are back in control. Also, note that 1.2350 is the Fibonacci 0.618 retracement of the above rally.
GBPUSD seems to have terminated a larger degree corrective drop around 1.2150 in May 2022. The zigzag corrective drop had begun in June 2021 from 1.4250. If the above structure holds well, the currency pair should be poised to produce yet another upswing that could extend beyond the 1.4250 mark in the next several weeks.
Potential short-term drop to 1.2350, then rally towards 1.3150 at least against 1.2100