Technical outlook:

GBPUSD dropped through the 1.2030 intraday lows on Tuesday as bears target to complete the counter-trend. The currency pair is re-testing its Fibonacci 0.786 retracement of the recent upswing between 1.1933 and 1.2405. Bulls are expected to come back in control from the current levels and push the price through 1.2700 going forward.

GBPUSD has completed a larger-degree corrective wave between 1.4250 and 1.1930. The above drop has unfolded as a complex corrective structure and might be complete at 1.1930. If the structure holds true, bulls will be inclined to come back in control from here and push through the initial resistance seen at 1.2665.

GBPUSD is currently working on its recent upswing boundary between 1.1930 and 1.2405 as discussed above. Prices have already retraced and are expected to be well capped above the 1.1930 interim support. A high probability remains for a bullish turn from the current levels at around 1.2030 in the near term. Also, note that 1.1930 is the Fibonacci 0.618 retracement of its larger degree upswing between 1.1400 and 1.4250.

Trading plan:

Potential rally towards 1.2700 against 1.1800

Good luck!