Technical outlook:
GBP/USD had rallied past 1.2800 levels before reversing lower again. The Cable pair is seen to be trading around 1.2310 levels at this point in writing and is expected to produce a counter trend rally towards 1.2550/1.2600 in the short term. Please note that the entire drop from 1.2800 through 1.2250 has reached the fibonacci 0.382 retracement of the previous rally between 1.1414 and 1.2800 respectively. GBP/USD seems to be in a corrective phase for now, which is expected to complete around 1.1950, which is fibonacci 0.618 retracement of the entire rally. Bulls have managed to rally from 1.1414 through 1.2800 earlier and are taking a break for a while now. They should be back around 1.1950 levels to resume again. It is good to exit long positions around 1.2550/1.2600 and wait for prices to correct lower before buying again.
Trading plan:
Exit long positions @ 1.2600. Then plan to enter buying again @ 1.1950, stop @ 1.1414, target is open.
Good luck!
