Technical outlook:
GBP/USD had remained in control of bulls since 1.1957 lows on September 03, 2019 earlier. The currency pair hit a fresh high at 1.3515 last week, after staging a rally for around 1,600 pips. A major swing seems to be in place and GBP/USD could enter into a corrective phase in the short term. It is seen to be trading close to 1.3255 levels at this point in writing and expected to drop further towards 1.2950 as highlighted here. If this structure unfolds accordingly, immediate price support at 1.3050 levels would break, opening more room for correction. Besides note that the immediate support trend line would also break if prices drop through 1.2950 levels, going forward. A much larger correction can be expected after the above unfolds, and price may drop towards 1.2800 levels, to find support at the medium term trend line. Trading point of view, an aggressive trade setup could be to go short against 1.3515 targeting lower towards 1.2800 before turning bullish again.
Trading plan:
Aggressive: Short against 1.3515, targets are at 1.2850 and 1.2800
Conservative: Remain flat for now.
Good luck!
