Technical outlook:
GBPUSD slipped through 1.2245 in the early Asian session on Wednesday. The currency pair managed to push through the 1.2325 highs on Tuesday before finding resistance and pulling over. Intraday support is seen at around 1.2225 and it goes up to the 1.2100-10 levels as bulls prepare to come back strong and push through 1.2665.
GBPUSD seems to have terminated its larger degree corrective drop, which began at 1.4250 as seen on the daily chart here. The entire drop has unfolded as a potential zigzag (5-3-5) structure and looks complete around 1.1930. If the proposed structure holds well, bulls will be poised to push prices through 1.4250 and higher in the next few weeks.
GBPUSD is facing immediate price resistance at around 1.2665. A break higher will confirm that bulls are back in control and a meaningful bottom is in place at around 1.1930. Watch out for a swift drop towards the 1.2100-10 area before bulls are back in control pushing through 1.2665 in the near term.
Trading plan:
Potential rally through 1.2665 and up to 1.3150, against 1.1800
Good luck!
