FX.co ★ Trading plan for GBP/USD for June 06, 2022

Technical outlook:

GBP/USD rallied through the 1.2589 mark on Friday to find resistance as bears came back strong. The pair dragged through 1.2485 before finding mild bids again. It is seen to be trading close to the 1.2500 mark. It is expected to decline to 1.2350 soon. Bears will be poised to hold below 1.2665 in the near term.

GBP/USD is unfolding an Up Gartley for the recent upswing between 1.2150 and 1.2665. The corrective wave is projected to terminate through 1.2350 levels, which is also the Fibonacci 0.618 retracement level of the recent upswing. The bulls might be looking to take a break for a while before coming back in action from the 1.2340-50 zone.

GBP/USD is working on a larger degree downswing between 1.4250 and 1.2150 as seen on the daily chart. A minimum push through 1.3200 remains possible in the next several weeks before finding resistance. Only a clear break above 1.3750 resistance will confirm a change in the trend.Traders might be preparing for near term drop to 1.2350 now.

Trading plan:

Potential short term drop to 1.2350 then rally through 1.3000 against 1.2100

Good luck!