Technical outlook:
GBPUSD dropped through 1.2975 in early hours on Wednesday before pulling back sharply. This was in line with our earlier projections. The currency pair is seen to be trading around 1.3050 mark at this point in writing and it is expected to continue higher. Bulls are now looking in control and poised to break above 1.3053 initial resistance.
GBPUSD seems to have produced a potential double bottom around 1.3000 mark as highlighted on the 4H chart here. A break above further resistance around 1.31800-1.3200 and 1.3300 will confirm the pattern. Bulls will now look to hold prices above 1.2975 mark to keep the structure in their favor.
GBPUSD will be looking to carve a series of higher highs and higher lows from here taking out major resistance seen around 1.3450 and 1.3750 respectively. This would certainly take several weeks to unfold but the downside pressure seems to be taken out now. Prices are trading around 1.3053 mark at the time of writing as bulls take out initial resistance as discussed earlier.
Trading plan:
Potential rally towards 1.3450 against 1.2900
Good luck!
