Technical outlook:
GBPUSD continues to drift in a sideways corrective manner since hitting ita high at 1.3515. It may drop to the support zone marked as a rectangle here. The single currency pair is seen to be trading around 1.3010/13 and bears are likely to push it lower one last time to 1.2550/1.2750 support zone. A number of convergences are seen towards the above viz: Fibonacci convergence is seen around 1.2700/30 levels, the past resistance turned support is seen around 1.2550, Fibonacci 61/8% drop of the entire rally between 1.1950 and 1.3515 is also seen around 1.2550 levels. Hence we are expecting GBPUSD to drop further towards 1.2550/1.2750 levels before it can resume its rally further. The projected targets for this rally are towards 1.4200 and 1.4500 respectively. Wait for another low to print below 1.2900 mark to enter buying against 1.1950 levels.
Trading plan:
Look to buy between 1.2550/1.2750 levels, stop @ 1.1950 and target is 1.4200 at least.
Good luck!
