GBPUSD Bounced Nicely Off Its Support, Potential Breakout
Buy above 1.3930. Stop loss at 1.3848. Take profit at 1.4176.
Reason for the trading strategy (technically):
GBPUSD bounced nicely off its support at 1.3930 (100% Fibonacci extension) where we expect it to rise further if it breaks out of its immediate resistance at 1.3992 (horizontal overlap resistance, descending channel). Once this level is broke, a bullish acceleration would be triggered, causing price to rise to its resistance at 1.4176 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap resistance). We do need to be cautious of the intermediate resistance at 1.4090 (38.2% Fibonacci retracement, horizontal overlap resistance).
Stochastic (89, 5, 3) shows a corresponding bounce off its support at 2.6%.
Reason for the trading strategy (technically):
GBPUSD bounced nicely off its support at 1.3930 (100% Fibonacci extension) where we expect it to rise further if it breaks out of its immediate resistance at 1.3992 (horizontal overlap resistance, descending channel). Once this level is broke, a bullish acceleration would be triggered, causing price to rise to its resistance at 1.4176 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap resistance). We do need to be cautious of the intermediate resistance at 1.4090 (38.2% Fibonacci retracement, horizontal overlap resistance).
Stochastic (89, 5, 3) shows a corresponding bounce off its support at 2.6%.