GBP/USD Eyes 5th Elliott Wave Extension Amid Technical Setup

GBP/USD is currently trading at a critical juncture as technical analysts identify a potential 5th wave formation in the Elliott Wave pattern. The pair has shown resilience above the 1.2950 support level, with momentum indicators suggesting possible continuation of the upward trend. The completion of the 4th wave correction appears to have set the stage for a final impulse move higher, targeting the 1.3200-1.3250 resistance zone. The Dollar Index futures are showing signs of consolidation, which could provide additional support for sterling's advance. Technical oscillators remain in positive territory, though approaching overbought conditions. Traders are closely monitoring the wave structure for confirmation of the 5th wave extension, which would validate the bullish Elliott Wave count. A successful break above 1.3100 would strengthen the bullish case, while failure to maintain above 1.2950 could invalidate the current wave structure and suggest a deeper correction ahead.