Our bullish wave count in GBPUSD is about to be put to the test. Price is pulling back now from our 1.32 target that was reached yesterday. This pull back should form a higher low and should not break below 1.2725.
In order for wave C and the entire correction to be over we should not see price break below 1.2725. Price has risen sharply recently and is now pulling back. The first support level by Fibonacci retracement is at 1.3025 and next most important support is at 1.2907. As long as price is above 1.29 bulls will have more chances of success. If price breaks below 1.29 then I believe the bullish scenario will be in danger of getting canceled. Resistance remains at 1.32 and a move above it will be a sign of strength. In order for our bullish scenario to come true, we need to see this pull back stop at 1.30 or at 1.29 and confirm a higher low.
