Since hitting a bottom on September 26, 2022, GBP/USD has been rallying. It finally hit a 3-month high at 1.2446 before coming under profit-taking. That profit-taking ultimately took GBP/USD to a recent low at 1.1841 before once again resuming its rally.
However, this time the rally attempt failed to take out the December high of 1.2446 with the best effort at 1.2436 before once again coming under profit-taking. Based on this observation, there is a possibility GBP/USD may fail to extend higher and may eventually slid lower to target the January low of 1.1841. If so, last night's rebound offers a chance to position shorts.
#1 Sold @ 1.23808 - Fri, Jan 20, 02:30am.
#2 Sell Limit @ 1.2410.
Stop @ 1.2480.
Target @ 1.2360