Technical outlook:
GBPUSD is testing its recent swing highs close to 1.3300/15 mark before reversing lower again. The Cable currency pair is seen to be trading around 1.3263 levels at this point in writing and might push beyond 1.3315 levels marginally, before resuming lower again. Immediate resistance for now is seen at 1.3315, followed by 1.3488; while interim support comes in at 1.3100 levels respectively. Once bears are able to break below 1.3100 levels, it will confirm that they are back in control. On the flip side, if GBPUSD breaks above 1.3500 mark it could change the structure to bullish in the short term. We remain prepared tor a shallow high above 1.3315, but GBPUSD stays below 1.3488 highs, going forward. The overall structure remains bearish with bias towards 1.2675 and 1.2200 levels in the next several weeks. Also note that 1.2200 is fibonacci 0.618 retracement of the previous rally between 1.1414 and 1.3488 respectively. Hence high probability remains for a bullish reversal if prices manage to reach there.
Trading plan:
Remain short, stop @ 1.3500, target @ 1.2200
Good luck!
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