Technical outlook:
GBP/USD rose through the 1.2405 high on Thursday before finding resistance and pulling back. The currency pair slipped towards 1.2300 intraday on Friday and is expected to resume higher soon. A push through 1.2470 will confirm that a bottom is at 1.1930 and bulls remain in control from here on.
GBP/USD earlier dropped through the Fibonacci 0.786 retracement level of the larger degree upswing between 1.1400 and 1.4250. If the above structure holds well, the next upswing will target above the 1.2665 initial resistance before pulling back. It would further accelerate towards 1.3150 and higher in the next several weeks.
GBP/USD also confirmed a bullish Morning Star candlestick pattern on the daily chart after bounding from 1.1930 early this week. Furthermore, the currency produced a strong bullish divergence on the daily RSI as shown here. Traders will remain inclined to hold long positions against 1.1900.
Trading plan:
Potential rally through 1.3150 against 1.1800
Good luck!
