FX.co ★ GBPUSD reacting below key resistance! Potential for drop!

GBPUSD testing and reacting below graphical swing high resistance and 50% retracement level. A short term drop below our 1st resistance at 1.38540 towards our 1st support at 1.38151 and ascending trendline support could be possible. Stochastics is reacting below resistance as well, where price dropped in the past.

Trading Recommendation

Entry: 1.38540

Reason for Entry:

50% Fibonacci retracement, Graphical swing high resistance

Take Profit: 1.38151

Reason for Take Profit:

61.8% Fibonacci retracement, Ascending trendline support

Stop Loss: 1.38878

Reason for Stop Loss:

78.6% Fibonacci retracement level