Trading plan for GBPUSD for October 29, 2020

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Technical outlook:

GBPUSD reversed sharply lower yesterday and hit 1.2916 lows before puling back higher. The Cable currency pair is seen to be trading around 1.3000 levels at this point in writing and is expected to continue lower towards 1.2200 levels in the next few weeks. Immediate resistance is seen through 1.3488 while interim support is around 1.2860, followed by 1.2675 levels respectively. A break below 1.2675 will accelerate lower and also confirm that a meaningful top is in place around 1.3175 levels. Furthermore also note that 1.3175 is the fibonacci 0.618 retracement of the recent drop between 1.3488 and 1.2675 respectively. High probability remains for a continued push lower with 1.3175 intact, going forward. The earlier rally between 1.1414 and 1.3488 is being retraced for now and GBPUSD is expected to drop towards fibonacci 0.618 levels around 1.2200. Bulls are expected to resume rally thereafter.

Trading plan:

Remain short, stop at 1.3500, target is 1.2200

Good luck!

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