Trading plan for GBPUSD for October 27, 2020

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Technical outlook:

GBPUSD might push higher to test 1.3175/1.3200 handle, before reversing lower again. The Cable currency pair is seen to be trading around 1.3035 at this point in writing and is expected to push higher. Also note that the back side of broken trend line support is also seen around 1.3200 levels. We can expect a bearish reversal from those levels. Immediate resistance is seen towards 1.3488 while intermediary support is intact around 1.2675 levels respectively. GBPUSD might be preparing to retrace the entire previous rally between 1.1414 and 1.3488 levels, ad drop towards 1.2200 respectively. Also note that 1.2200 is close to fibonacci 0.618 retracement of the above rally, and hence high probability remains for a bullish reversal, if prices manage to drop there.

Trading plan:

Remain short, stop @ 1.3500, target is open.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com