Technical outlook:
GBPUSD dropped through the support zone around 1.3050 levels early on Wednesday before finding some bids. The currency pair has re-tested its support and bounced back, indicating a potential bullish reversal ahead. The structure continues to remain constructive for the bulls until prices stay above 1.3000 initial support.
GBPUSD has yet again found support around the Fibonacci 0.786 retracement of its recent upswing between 1.3000 and 1.3300 levels respectively, which is seen around 1.3050 mark. It the above structure holds well, prices should push through 1.3450, which is the next resistance in line and up to 1.3750 levels.
On the flip side, a break below 1.3050 now, will open the door to test 1.3000 support levels. It would delay matters further for the proposed bullish momentum as bears might be back in control for short term. A push above 1.3170 at least, will reaffirm price action and we can expect bullish momentum to continue further.
Trading plan:
Potential rally through 1.3450 and higher against 1.3000
Good luck!
