GBPUSD dropped through 1.2990 mark last Friday, but has been quick to bounce back. The currency pair is now trading around 1.3020 mark and is expected to resume higher from here. Immediate price resistance is seen around 1.3050 level and a break higher will confirm a potential bottom in place.
GBPUSD seem to have carved a potential double bottom around 1.3000 support zone. Prices need to follow through and push above 1.3300 to confirm the pattern though. Probability remains high for bulls to be back in control from here and break above 1.3300 resistance going forward. Only a consistent break below 1.2090 will keep the bearish structure intact.
GBPUSD's drop below 1.3000 handle was accompanied by a strong bullish divergence on the RSI (not shown here). It could be an indication of potential trend reveral ahead. Watch out for a break above 1.3050 and 1.3180 to confirm the same and that bulls are back in control. Preparing to initiate fresh long positions.
Trading plan:Preparing for potential rally above 1.3180 against 1.2900
Good luck!