Technical outlook:
GBPUSD is testing the back-side of its long-term resistance trend line around 1.2400-1.2550 zone, which should provide strong support going forward. We have presented a weekly chart for Sterling Pound today to present a bird-eye view, which is indicative of a potential rally that could last several months.
GBPUSD has strong weekly support around the 1.1400 mark and it has carved a meaningful rally between 1.1400 and 1.4250 levels as seen here. Further, the entire rally has been retraced through fibonacci 0.618 level, which is passing through 1.2500 mark. Also note that prices are bouncing from convergence of fibonacci ratio and back-side of the trend line.
GBPUSD is preparing for a religious rally from 1.2400-2500 zone if the above structure holds well. The currency pair is facing strong resistance around 1.3700 mark and a break will confirm larger degree trend reversal. Traders might be preparing to initiate fresh long positions between 1.2400 and 1.2500 levels going forward.
Trading plan:
Potential rally against 1.2400
Good luck!
