GBP/USD: Technical Pullback or Bullish Reversal in Progress?

GBP/USD is experiencing a notable pullback from recent highs, prompting debate whether this represents mere technical consolidation or signals a deeper bullish reversal pattern. The pair has retraced approximately 0.5% from its weekly peak near 1.3150, finding initial support at the 1.3080 level where the 20-day moving average converges. Technical indicators show mixed signals, with RSI cooling from overbought territory while the broader uptrend structure remains intact above 1.3000. Market participants are weighing recent UK economic resilience against dollar strength dynamics, creating a tug-of-war in price action. Key resistance stands at 1.3150, while a break below 1.3050 would suggest deeper correction potential toward 1.2980. Traders should monitor upcoming UK retail sales data and any shifts in Bank of England rate expectations, which could provide directional clarity for the sterling's next major move.