Technical outlook:
GBPUSD is trading within a tight range since Wednesday low around 1.3050 mark. A very narrow trading range has been formed in the last 36 hours between 1.3050 and 1.3110, which could be broken soon. A bullish breakout will push prices through immediate resistance seen around 1.3160 in the near term.
On the flip side, a bearish breakout will drag prices toward 1.3000 to test immediate support. GBPUSD has already carved a meaningful upswing boundary between 1.3000 and 1.3300 as seen on the 4H chart here. Furthermore, prices have retraced lower to its fibonacci 0.786 levels seen around 1.3050 mark.
Ideally, the next leg should resume higher towards 1.3450, taking out initial resistance. Also note that potential remains for a continued push through 1.3750 resistance in the next several trading sessions. A push above 1.3170 will accelerate further and confirm that bulls are back in control.
Trading plan:
Potential rally through 1.3450 and 1.3750 against 1.3000
Good luck!
