Technical outlook:
GBPUSD rallied through 1.3400 again over last week, before reversing lower through 1.3300 on Friday. The currency pair is seen to be trading at around 1.3365 levels at this point in writing and is expected to resume lower again soon. Immediate resistance is seen at 1.3500, while support comes in around 1.3100 levels respectively. Intraday resistance is seen towards 1.3360/70 region and bears might remained inclined to take control from there. The overall structure continues to remain bearish over the medium term as 1.3488 stays intact. Also note that the counter trend rally that began from 1.2675 lows earlier might be complete at 1.3400, which is fibonacci 0.88 levels of the earlier drop between 1.3488 and 1.2675 levels respectively. Bears might be inclined to resume lower from here and push prices towards 1.2675 and lower. Please note that potential remains for a push through 1.2200 levels, which is fibonacci 0.618 retracement of the earlier rally between 1.1414 and 1.3488 levels respectively.
Trading plan:
Remain short for now, stop @ 1.3500, target is 1.2675 and 1.2200.
Good luck!
