Technical outlook:
GBPUSD slipped through 1.2458 on Thursday before finding bids again. The currency pair has pullback since then and is now seen to be trading close to 1.2555. The short-term bullish bounce was expected after hitting the Fibonacci 0.382 retracement of the lower degree upswing between 1.2150 and 1.2660 earlier.
GBPUSD is expected to drop through 1.2350 in the near term, before resuming higher towards 1.3000 and up to 1.3150 in the next several weeks. After having registered themselves by taking out initial resistance in the 1.2640-50 zone, the bulls are now taking a break as prices ease off. They should be back in control from 1.2350, the Fibonacci 0.618 retracement of the above upswing.
GBPUSD is projected to rally through 1.3000 and above 1.3150 going forward. The larger degree uptrend might come into force again if bulls are able to push harder above the 1.3750 resistance as highlighted on the daily chart. Traders might be preparing to remain long and add further positions around 1.2350 for now.
Trading plan:
Potential short-term drop through 1.2350, then rally to 1.3000
Good luck!
