GBPUSD reacting strongly from our selling area, remain bearish
Sell below 1.3340. Stop loss at 1.3467. Take profit at 1.3050.
Reason for the trading strategy (technically):
Price has rose and tested our selling area before reacting off it strongly. We remain bearish looking to sell below major resistance at 1.3340 (Fibonacci retracement, horizontal overlap resistance, bearish divergence) and we expect to see a major drop from here towards 1.3050 support (Fibonacci extension, horizontal swing low support).
Stochastic (55,3,1) also sees major resistance at 96% and there’s bearish divergence signalling that a reversal is impending.
Reason for the trading strategy (technically):
Price has rose and tested our selling area before reacting off it strongly. We remain bearish looking to sell below major resistance at 1.3340 (Fibonacci retracement, horizontal overlap resistance, bearish divergence) and we expect to see a major drop from here towards 1.3050 support (Fibonacci extension, horizontal swing low support).
Stochastic (55,3,1) also sees major resistance at 96% and there’s bearish divergence signalling that a reversal is impending.