GBPUSD Set for a Major Bullish Rebound

There is a confluence of bullish indications, all pointing to a very likely bullish rebound. The price action appears to have completed a major 1-5 impulse wave pattern, as postulated by the Elliott Wave Theory, just above the 38.2 per cent Fibonacci retracement level at 1.31676.

The price action also appears to have rebounded from the 600-day MA (in red), which is threading near the 38.2 per cent Fibonacci. This confirms the existence of very strong buying pressure there.

If it manages to break out above the major resistance level at 1.33000, underpinned by the 500-day MA (in green), the pullback's next target would be the previous swing low at 1.34000.