FX.co ★ Trading plan for GBPUSD for October 26, 2020

Technical outlook:

The GBPUSD had rallied through 1.3175 levels last week, before pulling back. The Cable currency pair is seen to be trading around 1.3040 levels at this point in writing and is expected to continue dropping lower towards 1.2200. Immediate resistance is seen at 1.3488, while intermediary support is around 1.2675 levels respectively. The larger boundary which is being worked upon is between 1.1414 and 1.3488 levels respectively. The currency pair might drop to fibonacci 0.618 retracement of the above rally, which is seen towards 1.2200 as depicted on the daily chart here. The counter trend drop looks to have completed two legs already from 1.3488 highs. Ideally, GBPUSD should resume lower from here until prices remain below 1.3500 highs.

Trading plan:

Remain short, Stop @ 1.3500, target is 1.2200

Good luck!