Technical outlook:
GBPUSD dropped through the 1.2180 low during the New York session on Tuesday, in line with the projections. Please note that the potential still remains for a drag through 1.2120 before turning higher towards 1.2665 at least. Bulls seem poised to hold prices above the 1.1930 interim support to keep the near-term structure intact.
GBPUSD has carved a meaningful corrective drop between 1.4250 and 1.1930 since January 2021. The entire drop was a potential corrective wave, which took time to terminate at around 1.1933. Also, prices have bounced off the Fibonacci 0.786 retracement of the larger degree upswing between 1.1400 and 1.4250.
GBPUSD has further carved a lower degree upswing between 1.1933 and 1.2400 in the past few trading sessions. The above boundary is being worked upon at the moment and prices could drag towards 1.2120 before resuming higher again. Traders might be preparing to add further longs at around 1.2120 and holding the positions thereafter.
Trading plan:
Potential rally through 1.2665 against 1.1800
Good luck!
