GBPUSD had rallied through 1.2768 levels yesterday before pulling back again. It has kept the potential bearish structure intact, since resistance at .1200/10 still holds well. Bears might remain poised to resume lower from here and a break below 1.2500 confirms.
GBPUSD had rallied from 1.1414 lows through 1.2800/10 levels in 5 waves, completing an impulse. Normally, an impulse wave is followed by a corrective wave A-B-C in the opposite direction. GBPUSD is underway to complete the corrective phase.
The drop between 1.2800/10 and 1.2250 was potential Wave A as labelled here. Please note that Wave A found support around fibonacci 0.382 retracement of the earlier rally between 1.1414 and 1.2800/10 levels.
The subsequent rally was expected to terminate around the fibonacci 0.618 retracement of Wave A drop, which is seen at 1.2600 levels. GBPUSD has managed to push through higher levels up to fibonacci 0.88 retracement, seen towards 1.2768.
If the above proposed counts are correct, GBPUSD should remain below 1.2800/10 mark and reverse lower from current levels. Bears must be poised to be back in control and push towards 1.2250 and 1.2000 respectively, to complete the corrective phase.
Immediate support is seen towards 1.2509, while resistance is around 1.2800 levels respectively. GBPUSD should remain bearish until 1.2800 remains intact and a break below 1.2500 would accelerate the drop further.
Short against 1.2800/10, targeting below 1.2250
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