GBPUSD on major resistance, time to sell

Published on: 2018-03-13 02:19 GMT

GBPUSD is testing major resistance and has presented us a good opportunity to sell.

Sell below 1.3923. Stop loss at 1.4005. Take profit at 1.3722.

Reason for the trading strategy (technically):

Price is testing major resistance at 1.3923 (Fibonacci retracement, horizontal overlap resistance, descending resistance) and a strong reaction could occur at this level to push prices down to 1.3722 support (Fibonacci extension, horizontal swing low support). We do have to be cautious of intermediate support at 1.3793 (Fibonacci retracement, horizontal swing low support) which price might bounce off as it approaching our profit target.

Stochastic (34,5,3) is seeing major resistance at 96% where a corresponding reaction could occur.