GBPUSD has retreated from recent peaks near 1.3600 and is currently completing a double top reversal pattern with the neckline at the 1.3425 level.

The pair appears to be consolidating within a well-defined upward trajectory that has been in place since early May, though recent price action suggests some profit-taking at elevated levels.

The current pullback has brought the pair down closer to the neckline, and a breakdown could confirm that a selloff of the same height as the formation is in the works. The chart pattern spans around 1.3425 to 1.3585.

From a moving average perspective, both the 100 SMA (blue line) and 200 SMA (red line) maintain their bullish alignment, with the shorter-term average positioned above the longer-term indicator. This configuration confirms that the path of least resistance remains to the upside, despite the recent corrective move.

Price is currently hovering near these dynamic support levels, which could provide a foundation for renewed buying interest. The gap between the indicators is also widening to reflect strengthening upside pressure while the 100 SMA appears to be holding as dynamic support.

The momentum indicators present a mixed but potentially constructive picture. The stochastic oscillator has declined from overbought territory and is approaching the midpoint, suggesting that selling pressure may be waning. The oscillator’s move away from extreme levels could attract fresh buying interest, particularly if it finds support above the 20 level.

RSI has pulled back from elevated readings but remains comfortably above the 50 midpoint, indicating that the underlying bullish momentum hasn’t been significantly compromised. The oscillator’s current positioning suggests there’s room for further upside once the current consolidation phase concludes.

GBP could take directional cues from upcoming UK economic data and Bank of England policy signals while USD could be driven by the top-tier US CPI lined up today.