FX.co ★ Trading plan for GBPUSD for May 19, 2022

Technical outlook:

GBPUSD has produced a corrective drop towards the 1.2330 mark after reversing from sub 1.2500 levels on Wednesday. The currency pair is seen to be trading close to 1.2370 levels at this point in writing and is expected to produce a continued rally through 1.2640-50 in the near term. Bulls will be inclined to hold prices above the 1.2155 mark going forward.

GBPUSD is facing immediate resistance around 1.2640-50, followed by 1.3150 and higher, while an intermediary low is now in place around the 1.2150 level respectively. A minimum push above 1.2640 is now required to confirm bulls are back in control and a meaningful bottom is in place around the 1.2155 mark.

GBPUSD has honored the bullish divergence scenario on the daily RSI since printing 1.2155 lows. We have been calling for a potential trend reversal ahead and price action is pushing close to the 1.2640-50 mark to confirm it. Near-term target potential is now seen through the 1.2640 and 1.3150 levels respectively. Bulls look poised to remain in control.

Trading plan:

Potential rally through 1.2640 and 1.3150 against 1.2100

Good luck!