FX.co ★ Trading plan for GBPUSD on May 23, 2022

Technical outlook:

GBPUSD rose through 1.2600 on Monday before pulling back. The currency pair has remained shy of the initial resistance at 1.2640 by a small margin as it is trading lower around 1.2575 at this point in writing. The potential still remains for another push through 1.2640 before producing a meaningful pullback though.

GBPUSD has now carved a lower-degree upswing between the 1.2155 and 1.2600 levels respectively. Ideally, prices should retrace lower towards the 1.2330-40 zone in the near term before bulls are back in control. The next-in-line resistance is seen through 1.3150, while interim support is at 1.2155 respectively.

GBPUSD has also entered into the buy zone of its long-term resistance trend line indicating a much deeper correction ahead. Potential upside targets remain towards 1.3150 and 1.3300 levels as projected on the daily chart. Traders might be preparing to initiate fresh long positions on dips towards the 1.2330-40 area.

Trading plan:

Potential drop through 1.2330 and then higher again.

Good luck!