GBPUSD bulls might be preparing to push towards 1.2668 and 1.2740 levels in the short term. The currency pair might have found interim support close to 1.2400 mark today, and a push above 1.2500 handle would confirm bulls are in control.
GBPUSD had dropped from 1.2813 highs print on June 10, 2020 in a corrective manner. An intermediary low was formed around 1.2335 mark early this week, and Sterling Pound had managed to push through 1.2550 levels.
The drop between 1.2813 and 1.2335 was in 3 waves, a-b-c on the chart. Either a corrective wave is complete at 1.2335 and GBPUSD would rally towards a potential new high above 1.2813 or another corrective wave a-b-c is in the making.
Either way, GBPUSD is expected to produce a rally towards 1.2650/60 levels at least. We shall take a review around that mark again, to decide the next course of price action. Only a consistent push above 1.2750 would confirm that GBPUSD is heading towards a new high.
It is difficult to confirm at this moment, but is prices reverse from 1.2650/60 levels, it would be a part of a larger corrective drop A-B-C; a potential flat corrective wave. GBPUSD would break below 1.2335 in that case and push lower towards 1.2000 levels, going forward.
As we prepare to publish this article, GBPUSD has found support around 1.2400 levels and is most likely headed towards 1.2650/60 region which is the fibonacci 1.271 extension of the rally between 1.2335 and 1.2542. A drop below 1.2335 from here would be encouraging for bears though.
Most traders might be preparing to go long around current price action 1.2420, with a protective stop below 1.2335 levels. The projected target could be towards 1.2650/60 and 1.2750 respectively. It remains to be seen if 1.2335 interim support holds for the time being.
Technical Analysis Team
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