Technical outlook:
GBPUSD is seen to be trading around 1.2682 levels at this point in writing. It is approaching the Fibonacci 0.786 resistance at 1.2700 level. The corrective rally from 1.2250 level is likely to be completed around 1.2682/1.2700 levels. Immediate resistance is at 1.2800, while support is seen around 1.2486 respectively. The wave structure indicates that GBPUSD should drop below 1.2250 levels to complete the corrective drop from 1.2800. A break below 1.2846 support will confirm that GBPUSD is heading towards 1.2250 and 1.2000 levels. A bullish bounce can be expected towards 1.1900/1.2000 levels. Please note that 1.1900 is close to Fibonacci 0.618 retracement of the entire rally between 1.1414 and 1.2800 respectively.
Trading plan:
Remain short for now, stop at 1.2800, target is 1.1900
Good luck!
