Technical outlook:
GBPUSD is seen to be trading around 1.2900 levels at this point in writing and might be looking to drop towards 1.2550/1.2750 levels before turning higher again. Also please note that the single currency pair might have already formed a bottom around 1.2850 last week and it could resume rally from here. Looking into the price action, GBP/USD has only retraced 38% of its previous rally between 1.1950 and 1.3515 levels respectively. A drop towards 50% retracement at 1.2750 or even lower towards 1.2550 would be extremely encouraging for bulls to resume its next rally. Besides note that 1.2550 is a convergence of fibonacci 0.618 retracement, past resistance which turned into future support and fibonacci 0.618 extension of the corrective drop. A bullish bounce from there should be bought with a stop below 1.2950 and potential targets remain through 1.4200/1.4500 levels going forward.
Trading plan:
Buy @ 1.2550/1.2750 levels, stop @ 1.1950, target is 1.4200/1.4500.
Good luck!
