Technical outlook:
GBPUSD is consolidating with a tight range between 1.2270 and 1.2320 for the last few trading sessions. The currency pair is seen to be trading close to 1.2280 at this point in writing and is expected to break higher towards 1.2665 soon. Bulls will be poised to hold prices above 1.1930 to keep the structure intact.
GBPUSD might have carved a meaningful bottom at around 1.1930 recently. The drop between 1.4250 and 1.1930 looks like a corrective zigzag pattern, which might be complete. Also, note that prices have bounced off the Fibonacci 0.786 retracement of its larger degree upswing between 1.1400 and 1.4250.
GBPUSD has also managed to carve a lower degree upswing between 1.1930 and 1.2400. Prices have retraced the above upswing through 1.2170 levels and the possibility remains for a drop to 1.2110-20 before turning higher again. Please note that 1.2100-20 is close to the Fibonacci 0.618 of the above upswing, hence the odds are for a turn higher.
Trading plan:
Potential rally towards 1.2665 and higher against 1.1800
Good luck!
