Technical outlook:

GBPUSD raised through 1.2665 high intraday on Friday before pulling back. The rally was in line with our earlier projections as bulls are entering the market now by taking out the 1.2640 initial resistance. The currency pair should produce a corrective drop towards 1.2350 before resuming higher again towards 1.3000 and 1.3150 respectively.

GBPUSD has now carved a meaningful upswing boundary between 1.2150 and 1.2665. The rally also confirms a much deeper correction going forward. Please note that the Fibonacci 0.618 retracement of the above rally is also seen through 1.2350 as marked on the daily chart here. The high probability remains for a bullish bounce if prices reach there.

GBPUSD is producing a potential shooting star candlestick pattern on the daily chart after reversing from the 1.2665 mark. A close below 1.2600 will confirm the same as bears prepare to drag further lower through the 1.2350 mark in the next few trading sessions. The overall structure remains bullish after a short-term correction.

Trading plan:

Potential short-term drop to 1.2350, then rally to 1.3000 against 1.2100

Good luck!