Technical outlook:
GBPUSD is still retracing lower and might drop below 1.2900 to find support before rallying further. The expected price support zone is between 1.2550 and 1.2750/1.2800 respectively, highlighted in a rectangle here. Please note that Fibonacci 0.618 retracement of the entire rally between 1.1950 and 1.3515 is seen around 1.2550 levels. Also note that channel support accompanied by the past resistance turned support zone is also converging around 1.2550. A bullish bounce around above levels remain high probability. GBPUSD is seen to be trading around the 1.3050 levels at this point in writing and might drop lower towards at least 1.2850 before reversing. The overall bullish structure is expected to remain intact until prices stay above 1.1950 levels. GBPUSD remains a good buy on dips towards 1.2850 and further to 1.2550 levels for an extended rally towards 1.4200.
Trading plan:
Remain long and buy more between 1.2550/1.2750, stop at 1.1950 and target is 1.4200.
Good luck!
