Technical outlook:
GBP/USD is most likely to resume a rally towards 1.3200 and 1.3500 levels. The currency pair has re-tested 1.2245 levels, which is fibonacci 0.236 retracement of the previous rally between 1.1450 and 1.2485 respectively. Please note that it is possible for yet another drop towards 1.2100 levels, which is fibonacci 0.382 support of the above rally. Overall, GBP/USD is expected to resume its rally towards 1.3200 and 1.3500 levels either from the current levels (1.2350) or from 1.2100 levels respectively. The bullish structure is expected to remain intact until prices stay above 1.1414 support. Immediate resistance is seen towards 1.3200 levels and a break higher would confirm long term trend reversal. Only a drop below 1.1414 levels would nullify the above bullish structure.
Trading plan:
Remain long, stop at 1.1414, target is open.
Good luck!
