GBP/USD Recovers From 1.3500 With Bullish Retest and Breakout Setup

GBP/USD has staged a steady recovery after finding strong support near the psychological 1.3500 handle, with technical indicators across multiple time frames aligning to support a bullish outlook. The pair's bounce from this key level suggests buyers are defending this zone aggressively, creating two potential trade opportunities: a bullish retest of reclaimed support and a breakout play above near-term resistance. The confluence of supportive technical signals, including trend line alignment and momentum indicators, strengthens the case for further upside. Traders are eyeing immediate resistance levels above 1.3550-1.3600, where a decisive break could open the door to extended gains. On the downside, a failure to hold above 1.3500 would invalidate the bullish thesis and potentially trigger a deeper correction. The setup reflects broader dollar softness, which has allowed sterling to regain footing. Near-term traders should monitor price action around these critical levels for confirmation before entering positions, with risk management anchored around the 1.3500 support zone.