GBPUSD looking poised to rally past 1.2600/20

GBPUSD hourly chart presented here is carving a story of a short term rally towards 1.2600/20. A push above 1.2510 would confirm that bulls are in control and remain poised to push through 1.2600 going further. Intermediary support is seen towards 1.2335 mark and prices should ideally stay above that for the above structure to hold. Looking into the short term wave counts, the drop since 1.2813 seems corrective a-b-c towards 1.2335. If the corrective drop is complete at 1.2335, GBPUSD should be setting up for a rally past 1.2800; if not, we expect a bearish reversal from around 1.2600/20. Also note that 1.2625 is the fibonacci 0.618 retracement of previous drop and also the extension of the recent rally. We favor short term rally towards 1.2600 against 1.2335.

Long against 1.2335, target 1.2600

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