FX.co ★ GBPUSD potential reversal! Drop incoming!

Price is below 1st resistance at 1.38884 in line with Horizontal swing high and 61.8% Fibonacci extension. It could potentially bearish from 1st resistance at 1.38884 in line with Horizontal swing high and 61.8% Fibonacci extension to 1st support at 1.37263 in line with 50% Fibonacci retracement and 61.8% Fibonacci extension. Our bearish bias is further supported by how Stochastic is testing resistance where price dropped in the past. Otherwise price may continue to bullish to 2nd resistance at 1.39444 in line with 127.2% Fibonacci retracement and 100% Fibonacci extension.

Trading Recommendation

Entry: 1.38884

Reason for Entry:

Horizontal swing high and 61.8% Fibonacci extension

Take Profit: 1.37263

Reason for Take Profit:

50% Fibonacci retracement and 61.8% Fibonacci extension

Stop Loss: 1.39444

Reason for Stop Loss:

127.2% Fibonacci retracement and 100% Fibonacci extension