Trading Plan for GBP/USD for July 27, 2018
The GBP/USD pair may be into its final leg lower as EUR/USD, before producing a meaningful counter-trend rally for the remaining of months. Please note that the pair has been dropping since mid of April 2018 and seems very close to completing its first major down move. Looking at the wave structure, the pair might be carving out a diagonal and into its 5th wave lower, before reversing sharply. If the above structure would hold, we should see prices dropping below 1.2950 levels or close to that. Thereafter, we can expect the years largest counter-trend rally which could last for several weeks to come. Immediate resistance is seen around 1.3200 levels, followed by 1.3300 levels, while interim support is seen at 1.2969 levels respectively. Expect intraday rallies to be capped below 1.3200 levels though.
Remain short and add more on intraday rallies, stop above 1.3200, target 1.2950.
Watch out for US GDP figures to be out today at 0830 AM EST.