Technical outlook:
GBPUSD rallied through 1.3400 highs today early hours, before pulling back. This currency pair is seen to be trading around 1.3345 levels at this point in writing and is expected to continue lower. Immediate resistance is intact towards 1.3500, while support is seen towards 1.3300 levels respectively. A break below 1.3300 lows would confirm that bears are back in control and that a meaningful high is in place around 1.3400 levels today. Furthermore, the entire pullback rally that had begun from 1.2675 has tested the fibonacci 0.786 retracement of the previous drop between 1.3500 through 1.2675 levels respectively. Also, an evening star bearish candlestick pattern is also seen to be emerging on the daily chart indicating a potential bearish reversal. High probability remains for bears to stay in control from here and push prices lower towards 1.2675 and 1.2200 levels respectively.
Trading plan:
Remain short, stop @ 1.3500, target 1.2675 and 1.2200.
Good luck!
