On GBP/USD we are tracking a corrective rally from March low, which is a complex pattern most likely a flat in wave II. And it seems that pair could reach levels above 1.5750 this week after recent bounce from the lower side of a current upward channel.

However, this new high will be just a final leg, fifth wave within wave (C), so larger bearish trend remains in view but market just needs more time than firstly thought.

On the 4h chart we can see that GBP/USD is back above 1.5700, but still showing a bearish wave pattern as we are tracking an ending diagonal placed in wave (C) position that could be now in final stages. Notice that we are tracking wave 5) her, final leg within the pattern that could be looking for resistance area 1.5800-1.5900 area in this week. An impulsive sell-off from here will put the pair in bearish mode.

Forex Analysis by Gregor Horvat at ForexPros. com