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12.05.202213:17 Forex Analysis & Reviews: Trading plan for GBPUSD for May 12, 2022

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Technical outlook:

GBPUSD has dropped below a fresh swing low around the 1.2165 mark on Thursday and is now pulling back. The currency pair has regained ground at 1.2200 and is seen to be trading around the level of 1.2210 at this point of writing. The price seems to have carved through a formidable low just above the 1.2150 level, and bulls will be poised to come back in control soon.

GBPUSD is facing resistance around 1.2640, followed by 1.3150, while the interim support is close to 1.2150 respectively. A clear break is now required above the 1.2640 mark to confirm that bottom is in place. On the flip side, if prices continue to slide through 1.2165, this will open the door for testing 1.2000 in the near term.

The only positive thing for bulls may be a strong bullish divergence on the daily RSI. With consecutive lows printed through 1.2165, the RSI is far from printing a new low as shown here. There is a high probability of a bullish turn but it is good to wait for a confirmation on the daily chart before committing further.

Trading plan:

Prepare for a potential bullish reversal.

Good luck!

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