Technical outlook:
GBP/USD is trading in a narrow range, waiting to a break lower towards the 1.2550/1.2750 support zone marked here. Please note that the entire rally between 1.1950 and 1.3515 could be retraced up to 61.8% before resuming its rally. The counter-trend has completed 2 corrective waves within the ideal 3-wave drop. Ideally, another drop below 1.2900 would be required to complete the correction here. As discussed earlier, please note that the previous resistance which turned into support and 61.8% fibonacci retracement is seen towards 1.2550 levels. A bullish bounce remains a high probability if prices manage to reach there. Another probable bounce is seen towards the 1.2850 levels with its immediate support as well. Please wait for a drop below 1.2900 levels within the above zone to open long positions, targeting 1.4200 and higher.
Trading plan:
Remain flat for now. Buy between 1.2550/1.2750, stop @ 1.1950 and target is open.
Good luck!
