Technical outlook:

GBP/USD has retraced lower towards the fibonacci 0.236 levels at 1.2241 levels today, before pulling back and is seen to be trading around 1.2340 levels at this point in writing. Please note that the corrective drop has been quite shallow until now and the single currency pair might drop towards 1.2100 levels, which is 38.2% retracement of the previous rally. Either ways, GBPUSD is then expected to resume its rally back towards 1.3200 and 1.3500 respectively. Once the resistance at 1.3515 is taken out, it would add further confirmation towards a medium to long term trend reversal. Aggressive traders could initiate long positions between 1.2100/1.2240 with risk at 1.1414 and potential short term targets above 1.3515 respectively. The overall structure remains bullish until prices stay above the 1.1414 levels and bulls are looking determined to take out resistance at 1.3515 before producing any meaningful correction lower.

Trading plan:

Remain long @ 1.2100/1.2250, stop @ 1.1414, target is 1.3515 and higher.

Good luck!