GBPUSD on the H1 timeframe is currently trading in a corrective phase after completing a strong recovery move from the lower demand area. Price previously dropped toward the 1.33750 region, where strong buying pressure entered the market and pushed price higher. This bullish recovery confirms that buyers are still active on dips, although momentum has slowed near the recent highs.
From a technical analysis point of view, the overall structure is neutral to mildly bullish. Price is now trading around the 1.34373 area, which is acting as a short-term decision zone. This level has shown multiple reactions in the past, indicating that the market is currently in balance. The recent rejection from higher levels suggests that sellers are active near resistance, but buyers are still protecting the downside.
The zone between 1.34650 and 1.34900 is a strong resistance area. This region previously rejected price with strong bearish candles, making it a possible sell zone. If price moves back into this resistance zone and shows rejection or weak bullish momentum, selling pressure may push price back toward 1.34300 first, followed by a deeper pullback toward 1.34050. A clear break and hourly close above 1.35000 would invalidate the sell bias.
On the downside, the area between 1.33950 and 1.33750 is a strong support and demand zone. This zone acted as the base for the recent bullish move and is considered a possible buy zone. If price retraces into this area and holds with bullish confirmation, buyers may target a move back toward 1.34350 and then 1.34650. A sustained break below 1.33600 would weaken the bullish structure.
Overall, GBPUSD is currently suitable for zone-based trading rather than aggressive trend trading. Traders should wait for price to reach either the resistance or support zones and look for confirmation on the H1 timeframe before entering positions. A breakout above 1.35000 would signal bullish continuation, while a breakdown below 1.33600 could open the door for a deeper bearish move.
