GBP/USD Chart Setup: Fibonacci Retracement Defines Next Move

GBP/USD has pulled back into the 61.8% Fibonacci retracement zone measured from its most recent impulsive leg, a level that historically acts as a decision point for trend continuation or reversal. Price is currently coiling just above this support, with lower-timeframe structure showing signs of stabilization.

A bearish divergence between price and MACD suggests momentum is fading even though spot rates recently pushed toward local highs, a warning sign for late-entry longs. Should the retracement zone fail to hold, the pair risks extending losses toward the next Fibonacci confluence area further down the chart.

Conversely, a strong bullish reversal candle at current support, paired with MACD crossing back above its signal line, would reinforce the case for continuation of the broader uptrend.