GBPUSD might be pushing higher towards 1.3300 handle before reversing lower again. The currency seems to have completed its minimum requirements for a completion of Wave C from 1.2250 levels. Bears might remain inclined to be back in control.
GBPUSD bulls have also managed to take out resistance around 1.3200 handle. We have been referring to this since last few weeks now. A meaningful corrective drop should be due towards 1.2100 levels going forward. We shall wait for a bearish turn from here.
GBPUSD had dropped through 1.1414 lows in March 2020. After hitting a multi-year low, the currency had turned higher and remained in control of bulls. A series of higher highs and higher lows were carved and the structure looks to be a 5-3-5 until now.
If an impulse wave is underway, GBPUSD may continue its rally towards 1.3500 and higher. Alternately, the above rally could be retraced through fibonacci 0.618 levels around 1.2100 mark. It would be difficult to predict that pieces would stay above 1.1414 levels.
Either way, a meaningful corrective drop should be due from current levels. Watch out for a potential top and reversal around 1.3250/1.3300 levels, going further. Also note that next in-line resistance is seen above 1.3500 mark.
Immediate support is seen towards 1.3000 levels and a break lower would certainly confirm that GBPUSD has carved a meaningful top around 1.3250/1.3300 handle.
Prepare to sell between 1.3250/1.3300 mark.