GBPUSD seems to be forming a corrective cycle XX, which can be seen as a zigzag and consists of primary sub-waves Ⓐ-Ⓑ-Ⓒ.
A fresh 5-wave bullish impulse Ⓒ could be underway.
Following the completion of the intermediate correction wave (4), bulls could continue pushing upwards towards the 1.31 round level.
A closer look at the 1H timeframe indicates that intermediate wave (4) consists of minor waves W, X, Y, where wave Y has taken the form of a standard bearish zigzag.
In the short term, we could see a decline near 1.2775 to complete the zigzag in minor Y. That level would mark prices lower as part of the 2X Fibonacci extension of minute waves ⓐ and ⓑ.
It also happens to be the 200% Fibonacci extension of minuette waves (i) and (ii), and that makes it a strong absorption/confluence level.
