FX.co ★ Tips for trading GBP/USD

GBP/USD formed a double weekly peak around 1.2545. Stop orders from sellers may accumulate behind it, which could lead to quotes staying around this area.

Because of this, a rally may be seen in the pair, and the movement may look like this:

With the three-wave pattern (ABC) in the pair, where wave A represents the buying pressure observed last week, traders could open long positions with a 50% retracement based on the Fibonacci levels. Limit the risks at 1.22364 and 1.23, then take profit upon the breakdown of 1.2545.

The idea came from the framework of the "Price Action" and "Hunt for Stops" methods.

Good luck in trading and manage your risks. Have a great day ahead!