Technical outlook:
GBPUSD had raised through 1.3400 levels this week before finding resistance and pulling back. The Cable currency pair is seen to be trading at around 1.3347 levels at this point in writing and might be preparing to decline further. Also note that a potential shooting star candlestick pattern appeared on the daily chart the day before yesterday. If GBPUSD manages to stay below 1.3400 highs and continue lower towards 1.3100 levels, it could be considered as a welcome sign for bears. The currency pair faces immediate resistance towards 1.3500 levels, while intermediate support comes in around 1.3100 levels respectively. GBPUSD earlier rallied from 1.1414 lows in March 2020, through 1.3488 highs in September 2020. The entire rally could be retraced toward 1.2200 levels since it is the fibonacci 0.618 level of the above rally. The overall structure would continue to remain bearish until prices stay below 1.3500 resistance and a high probability remains for a further push towards 1.2200 levels respectively.
Trading plan:
Remain short, stop @ 1.3500, target @ 1.2675 and 1.2200
Good luck!
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