Chart of the day

GBPUSD is bouncing from the uptrend support of 1.2750. A confirmed break above 1.2850 is required for a reversal higher and an extension to 1.3200.

This is still a fourth wave pullback and we could see a final swing in the fifth wave. A break below 1.2600 is required for a downside reversal and invalidation of the fifth wave higher.

Long trade, you can open here with a stop loss just below 1.2600. Short trade entries you can open only in the case of a break below 1.2600. We are favoring the long trade entries as we expect a strong swing higher to 1.2850.