FX.co ★ Trading plan for GBPUSD on July 01, 2022

Technical outlook:

GBPUSD dropped through 1.2090 intraday on Thursday before finding support and pulling back higher. The currency pair has carved an Engulfing Bullish candlestick pattern on the daily chart indicating a potential trend reversal from here. It is seen to be trading close to 1.2125 at this point in writing and is expected to turn higher from here soon.

GBPUSD has completed a larger-degree corrective wave between 1.4250 and 1.1933 as seen on the daily chart. The corrective wave has unfolded as a complex combination and terminated at 1.1933, which is just below the Fibonacci 0.786 retracement. If the above structure holds well, the next leg should be higher towards 1.2665 and beyond.

GBPUSD has also carved a recent lower degree upswing between 1.1933 and 1.2400 in the past few trading sessions. Afterwards, it completed the retracement of the above rally toward the Fibonacci 0.786 level at around 1.2090. Ideally, bulls are expected to be back in control from here on.

Trading plan:

Potential rally through 1.2665 aginst 1.1800

Good luck!