Technical outlook:
GBPUSD seems to be progressing higher towards the 1.2665 initial resistance after having dropped through 1.1940 over the last week. The currency pair raised through the 1.2400 mark before pulling back and finding support again at around 1.2170. Bulls are looking poised to hold prices above 1.1940 to keep the near-term structure intact.
GBPUSD has potentially carved a larger-degree corrective decline between 1.4250 and 1.1940 levels as seen on the daily chart. Further, please note that 1.1940 is a Fibonacci 0.786 retracement of the earlier rally between 1.1400 and 1.4250. The entire structure is looking constructive to a larger degree as the bulls prepare to stage another rally towards 1.4250.
GBPUSD is seen to be trading at around 1.2245 at this point in writing and is expected to resume its rally anytime soon towards the 1.2665 initial resistance. Once taken out, it will confirm that bulls are back in control and the trend has reversed. Traders might be inclined to add fresh long positions around the current levels.
Trading plan:
Potential rally through 1.2665 and 1.3150 against 1.1800
Good luck!
