FX.co ★ Trading plan for GBPUSD for May 31, 2021

Technical outlook:

GBPUSD has been in a religious uptrend since printing lows around 1.1400 levels in March 2020. The rally has extended all the way through 1.4242 before prices reversed and broke below the trend line support. Prices dropped through 1.3675 mark in March 2021 and has now reached the back side of support turned resistance trend line around 1.4230.

GBPUSD wave structure seems to be of A-B-C-D where A-B-C looks complete and prices should resume lower towards Wave D around 1.3300 and 1.2700 levels, going forward. It is seen to be trading around 1.4170 levels at this point in writing and is expected to turn lower anytime soon. Immediate resistance is seen at 1.4250 while support is around 1.4100 levels respectively.

A break below 1.4100 will confirm that GBPUSD has carved a lower top around 1.4233 levels and is on its way lower towards 1.3675 levels at least. Bears are expected to stay in control from here on.

Trading plan:

Remain short, stop @ 1.4250, target @ 1.3666

Good luck!