FX.co ★ Trading plan for GBPUSD for July 31, 2020

Technical outlook:

GBPUSD has continued its rally through 1.3144 levels today before slipping lower. The currency is back to 1.1335 levels at this point in writing and might be looking to push through 1.3200 resistance going forward. It is not mandatory for GBPUSD to clear 1.3200 before reversing lower again but probabilities remain high. On the flip side, a break below 1.3100 would confirm that a meaningful top might be in place around 1.3144 today and bears would remain in control going forward. Also note that GBPUSD has already hit fibonacci 0.618 extension of the initial rally between 1.1414 and 1.2650 mark respectively. Hence a bearish reversal could be due anytime soon and traders might be prepare to sell again on a break below 1.3100 interim support.

Trading plan:

Remain flat for now and sell on a break below 1.3100, stop @ 1.3250, target is open

Good luck!