April 23 (Reuters) - Cable's weakness likely to persist as the fallout from a recent "bull trap" continues.

GBP/USD's rise from the 2026 low has been limited by the 1.3597 Fibonacci level, a 61.8% retrace of the 1.3867 to 1.3160 2026 fall this month. The 61.8% retracement is known by some as the "golden ratio" in the sequence due to its outsized significance in determining direction of the price action.

GBP/USD rose to 1.3599 last week to only marginally break the 1.3597 Fibo, but it failed to register a daily close above, a classic "bull trap". A bull trap is set when a market breaks above a technical level but subsequently reverses and is usually a bearish sign.

There is a good chance GBP/USD will continue to suffer a setback to at least last week's 1.3384 low, a break below which would weaken it further.

However, those that are bearish should beware that the 14-day momentum reading remains positive.
Daily Chart

(Martin Miller is a Reuters market analyst. The views expressed are his own)