GBPUSD has reversed from 1.3000 handle yesterday. The currency has dropped to 1.2880 levels after facing resistance around fibonacci 0.382 retracement of the drop between 1.3485 and 1.2675 levels respectively. Intraday support can be seen around 1.2840/70 levels, for a potential rally.
GBPUSD might have carved a lower high around 1.3000 levels yesterday. If the structure holds well, bears must be poised to remain in control from here and push below 1.2675 mark. They would be looking to drag prices lower towards 1.2200 handle going forward.
Alternately, GBPUSD might still be unfolding its corrective rally that had begun from 1.2675 lows. The wave structure could be as follows: The initial drop between 1.3485 and 1.2675 was an impulse, defined as potential Wave A within the A-B-C correction towards 1.2200 levels.
Furthermore, the subsequent rally towards 1.3000, which is also fibonacci 0.382 retracement of the Wave A, could be marked as a lower degree corrective wave a within the a-b-c corrective rally. If the alternate count holds well, GBPUSD might resume rally from 1.2850/80 zone.
GBPUSD might unfold its lower degree wave c and push higher towards 1.3175/1.3200 mark before reversing lower again. Also, fibonacci 0.618 retracement of the drop between 1.3485 and 1.2675 is seen passing through 1.3200 handle (not shown here).
Hence probability remains high for a bearish reversal, if prices reach 1.3175/1.3200 mark going forward. A turn lower would encourage bears to be back in control and push through 1.2200 mark respectively.
Short against 1.3500, target remains open.