As you have seen a decent rally on all GBP pairs, particularly on GBPUSD which is due to UK Election and DXY weakness. We can see a nice reversing candle sitting on the 4h chart which suggest we might see some retracement towards the previous support level where I will take my profit and look for opportunities to go long again as this pair didn't touch the descending trendline as yet. The trendline is located near 1.3150 level or thereabout depending when it touches. The significance of the trendline is, it hasn't been broken since 2014 and I'm anticipating the same again. I would take my buy profit around that area and go short again and this time I will be looking at 0.382 fib level which is located at or around 1.2707 level and if broken I will be looking for 1.2500 level in coming days.
I have marked tp and sl for all three trades. Please make sure to use correct risk management and don't forget to share your views.
Thus pair is being pushed up due to tory support and election sentiment. However over the coming days I believe this will drastically change. Looking for a big drop in the coming week and TP at 1.2750. iA