FX.co ★ Trading plan for GBPUSD for September 23, 2020

Technical outlook:

GBPUSD has dropped through yet another low today around 1.2675 mark before pulling back. The currency is seen to be trading around 1.2720 levels at this point in writing and is expected to finally produce a meaningful counter trend rally towards 1.3150 levels at least. Please note that GBPUSD is carving a potential hammer candlestick pattern on the daily chart. Probabilities remain high for a bullish reversal towards 1.3150/80 levels, in the next few trading sessions. The recent boundary being worked upon is between 1.3483 and 1.2675 respectively and the fibonacci 0.618 retracement is also seen towards 1.3180 levels as depicted here. The counter trend rally should be taken as opportunity to initiate fresh short positions, going forward.

Trading plan:

Remain short, stop above 1.3500, target is 1.2200

Good luck!