Technical outlook:
GBPUSD is trading close to the fibonacci 0.618 extension of the first leg of the rally between 1.1414 and 1.2645 respectively. Immediate price resistance is seen towards 1.3200, while support comes in at 1.2509 respectively. The Cable currency pair is seen to be trading around 1.2995/97 at this point in writing and is expected to produce a bearish reversal soon. Since GBPUSD remains completely in the buy zone of the support trend line through 1.1414 levels, it is advisable to remain on the long side or flat. The rally from 1.1414 look complete around 1.3000 levels and GBPUSD could be reversing lower from here. We shall be waiting for a confirmed bearish signal on the daily chart to initiate fresh short positions.
Trading plan:
Remain flat for now and prepare to sell.
Good luck!
