GBPUSD is still testing the backside of a multi-year trend line resistance, which is now strong potential support around the 1.2400-1.2500 zone. The currency pair is trading close to the 1.2480 mark at this point in writing and is expected to turn higher ahead of the 1.2411 low. Bulls need to hold prices above the 1.2411 mark to keep the structure intact.
GBPUSD dropped through fresh swing lows around 1.1400 in March 2020. The subsequent rally broke above its resistance trend line and rallied through 1.4250, just shy of its previous resistance seen around 1.4375 as marked on the weekly chart here. Furthermore, the entire upswing between 1.1400 and 1.4250 has been now retraced.
GBPUSD has found potential support around the Fibonacci 0.618 retracement of the earlier upswing, which is seen close to the 1.2500-10 mark. Ideally, bulls should be poised to come back in control from current levels (1.2475), and push through higher levels. Potential remains for a rally that exceeds 1.4250 levels going forward.
Trading plan:Potential rally through 1.4250 against 1.2200 mark.
Good luck!