GBPUSD (Cable) is showing signs of a bullish reversal after breaking above channel resistance near the 1.3400 level. This breakout suggests that a higher-degree corrective phase is now in progress.
From an Elliott Wave perspective, the pair appears to be developing a three-leg recovery within wave B (blue). The current move higher is likely part of subwave A, which could extend beyond the 1.3600 region. Even a move into that zone would still represent only the first leg of a broader corrective structure.
Looking ahead, a pullback in wave B may occur in the near term. However, any downside should ideally find support in the 1.3400–1.3450 area. As long as price holds above this support zone, the bullish corrective outlook remains intact, with further upside potential in the following legs of the pattern.
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