GBPUSD - Long but with caution

After cable reached a local swing high of 1.2760 last Friday due to USD's underperformance during NFP, it retraced back 50% on Monday to 1.2650. We are looking to buy this pair after watching the price action around 1.2650-60. This area offered some support for the pair. Those looking to buy GBPUSD can start buying from here if the price respects the support. Alternatively, GBPUSD may still have one more down leg to go before the up move begins. We can wait for the right shoulder of the inverse head and shoulder pattern to form and buy the pair from there.

Entry levels for long:
1.2660
1.2610

Support areas to watch:
1.2650
1.2600

Resistance areas to watch:
1.2760
1.2868

Apply proper risk management.