Technical outlook:
GBPUSD continued its drop and carved another low at 1.2105 on Thursday before finding some bids. The price drop has been in line with the projections made earlier as the corrective drop looks complete at 1.2105. Bulls will be poised to hold prices above the 1.1930 interim support to keep the structure constructive, going forward.
GBPUSD has already carved a larger degree corrective drop between 1.4250 and 1.1930 since June 2021. The structure unfolded as a potential zigzag and looks complete at 1.1933. Also, note that prices have found support from just below the Fibonacci 0.6786 retracement of the larger upswing. Watch out for a bullish reversal from here soon.
GBPUSD has been working on a lower-degree upswing between 1.1930 and 1.2400 in the past few trading sessions. Prices have finally reached the Fibonacci 0.618 retracement close to the 1.2100-10 levels. A high probability remains for a sharp bullish reversal from current levels (1.2130) and a push through the 1.2665 initial resistance.
Trading plan:
Potential rally towards 1.2665 against 1.1800
Good luck!
