Technical outlook:
The GBP/USD daily chart presented here is indicating that the pair might have formed an interim support at 1.3200 handle. This scenario was discussed earlier and possibility for a relief rally is high for now. The pair had earlier broken blow its immediate trend line support as seen here and now it has taken out an important price support at 1.3200 levels as well. The next move should be a rally towards 1.3900-1.4000 handle which lies at the back side of the support turned resistance trend line indicated through an arrow here. A failure for a rally to begin from here could very well bring back prices lower towards 1.3100 levels which is next support in line. Looking at the wave count, the entire drop from 1.4360/70 through 1.3200 levels can be defined as wave (1) and we can expect the pair to resume rally towards wave (2) as shown here.
Trading plan:
Aggressive traders can remain long for now with stop below 1.3200 levels.
Fundamental outlook:
There are no major events lined up for the rest of the day.
Good luck!
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