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GBPUSD continued to slide on Tuesday printing the 1.2485 low as bears remain in control. The currency pair might find interim support soon and attempt to push through the 1.2640-50 initial resistance on the daily chart. We can expect a significant correction thereafter towards the 1.2300-30 zone. The currency pair is trading around 1.2500 at this point in writing.
GBPUSD has already carved a lower degree upswing between 1.2155 and 1.2600 over the past few trading sessions. Further, it is quite possible that 1.2560 will be taken out soon. Ideally, prices should produce a corrective drop before resuming a rally towards 1.2870 and 1.3150 going forward.
GBPUSD's drop between 1.4150 and 1.2155 seems to be a zigzag, hence corrective. If the above scenario holds well, the potential remains for prices to push through 1.3750 in the next several trading sessions. The bottom line is that bulls should be able to hold above 1.2155 for the above structure to remain intact. Traders might prepare to add further on dips.
Potential rally through 1.3150 against 1.2155
Good luck!
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