Technical outlook:

GBPUSD rallied through 1.2600 on Monday before pulling back. The currency pair has re-tested 1.2599 intraday on Tuesday before sliding lower again. It is seen to be trading at around 1.2510 at this point in writing after slipping through 1.2475 earlier. Bulls have remained just shy of the initial resistance at the 1.2640 mark.

GBPUSD has managed to carve a meaningful upswing between 1.2152 and 1.2600 in the past few trading sessions. Ideally, prices should retrace the above towards the 1.2300-30 zone before turning higher again. It remains to make sure if the currency turns lower from here or after pushing through the 1.2640-50 resistance.

GBPUSD bulls will be inclined to hold prices above 1.2150 to keep the momentum going. Potential upside targets are defined as 1.2870, 1.3150, and 1.3320 as projected on the daily chart here. Only a consistent drop below 1.2250 will open the door towards 1.2152 and further. Traders might be preparing to initiate long positions again from the 1.2300-30 levels.

Trading plan:

Potential rally through 1.3150 against 1.2150.

Good luck!