Technical outlook:
GBPUSD posted an impressive rally on Wednesday post the FOMC, after testing 1.0451 intraday support. The currency pair extended its gains through the 1.2638 mark, having climbed almost 180 pips in a single trading session. Since then, bears have managed to pull back as they carved a potential higher low around 1.2520.
GBPUSD is seen to be trading close to 1.2550 at this point in writing and is expected to resume higher through 1.3000 in the near term. We have again presented the weekly chart to focus on the larger wave structure, which is looking bullish from here. Prices are bouncing off from the backside of its past resistance trend line, around the 1.2400-2500 zone, which acts as strong support now.
Also, note that prices have found support around the Fibonacci 0.618 retracement of the entire rally between 1.1400 and 1.4250 respectively. If the above structure holds well, GBPUSD should rally from here and push through 1.3800 in a few trading sessions. On lower timeframes, prices should stay above 1.2400 to keep the structure intact.
Trading plan:
Potential rally through 1.3000 and higher against 1.2400
Good luck!
