GBPUSD Reversed Nicely Off Its Resistance, Prepare For a Further Drop

Published on: 2018-04-16 02:31 GMT

GBPUSD tested its major resistance where we expect to see a further drop.

Sell below 1.4297. Stop loss at 1.4351. Take profit at 1.4123.

Reason for the trading strategy (technically):
GBPUSD tested its resistance area at 1.4297 (76.4% Fibonacci retracement, 61.8% Fibonacci extension, horizontal swing high resistance), where it reversed nicely off it. We expect to see price drop further to its support at 1.4123 (61.8% Fibonacci extension, 50% Fibonacci retracement).

Stochastic (55, 5, 3) reversed nicely off its resistance at 98%. A bearish divergence with price has also been identified which contributes to our bearish bias.