Technical Outlook:
The GBP/USD 4H chart has been presented here for a larger swing picture. Immediate trading opportunities seem to be on the long side for now since the pair has broken its short-term trend line support and also price at 1.3950/70 levels earlier. Looking at the wave counts, GBPUSD looks to have completed 5th of the 5th wave of a larger degree on April 17th, 2018, at 1.4375 levels. The single currency pair has given away almost 500 pips since then and the wave counts suggest that the drop has been an impulse; 5 waves as depicted here. If the above structure holds, we are very close to see a price reversal from here and bulls will come into play, though in a corrective way. Aggressive traders may look for opportunities to go long with a tight risk below recent lows. Also, note that the back side of the trend line support is seen around 1.4135 levels which should act as a formidable resistance level going forward.
Trading plan:
Aggressive traders prepare to go long now with a tight stop below 1.3880 levels, target around 1.4135 levels respectively.
Fundamental outlook:
Watch out for German unemployment rate at 0355 AM EST today.
Good luck!
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