Technical outlook:

GBPUSD rose through the 1.2310 mark on Wednesday before pulling back. The currency pair is tracing close to the 1.2260 mark at this point in writing and is expected to push towards 1.2665 and 1.3150 going forward. Bulls might remain inclined to hold prices above the 1.1930 mark to keep the near-term structure constructive.

GBPUSD might have terminated a larger degree corrective wave, which began from the 1.4250 high in June 2021. The correction seems to have unfolded as a complex combination terminating just below the Fibonacci 0.618 retracement of the larger degree upswing between 1.1400 and 1.4250 respectively (not seen completely on the daily chart).

GBPUSD is now working on a lower degree upswing between 1.1930 and 1.2405. Please note that it could first drop towards the 1.2110-20 zone before resuming its rally towards the 1.2665 initial resistance. A break above 1.2665 will confirm that bulls are back in control and that the trend has potentially reversed.

Trading plan:

Potential rally through 1.2665 aginst 1.1800

Good luck!