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The GBP/USD pair rallied at the time of writing as the USD was punished by the DXY's drop. In the short term, the pair maintains a bullish bias, so further growth is favored. As you already know, the Dollar Index is bearish, more declines are possible despite its minor rebound.
Fundamentally, the US data came in worse than expected lately. The Flash Manufacturing PMI and the Flash Services PMI dropped in the last month signaling a slowdown in expansion. Today, the Core Durable Goods Orders and Core Durable Goods Orders reported poor data.
Later, the FOMC Meeting Minutes could change the sentiment, that's why you have to be careful, anything could happen. As you already know, the FED is expected to continue hiking rates in the next monetary policy meetings. More hawkish than expected minutes could lift the greenback.
Technically, the bias remains bullish as long as it stays above the 1.2498 level and beyond the upper median line (uml). The GBP/USD pair retreated after finding resistance at the 150% Fibonacci line (dotted line), right below the R1 (1.2610).
In my opinion, only dropping and stabilizing below the 61.8% (1.2458) retracement level may signal a deeper drop and could invalidate an upside continuation.
Making a valid breakout above the R1 (1.2610), a new higher high may signal an upside continuation and could bring new long opportunities.
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