GBPUSD Approaching Resistance, Sell On Strength!
Sell below 1.3616. Stop loss at 1.3743. Take profit at 1.3314.
Reason for the trading strategy:
Price is approaching our first resistance at 1.3616 (horizontal swing high resistance). We expect a strong reaction to occur below this level, pushing price down to our major support at 1.3314 (horizontal overlap support, 38.2% Fibonacci retracement). A breakout below our intermediate support at 1.3469 (horizontal overlap support, 38.2% Fibonacci retracement) will provide the bearish acceleration to our take profit level. Ichimoku cloud is also showing signs of bearish pressure, in line with our bearish bias.
RSI (34) is also seeing a bearish exit and we can expect a corresponding drop in price.
Reason for the trading strategy:
Price is approaching our first resistance at 1.3616 (horizontal swing high resistance). We expect a strong reaction to occur below this level, pushing price down to our major support at 1.3314 (horizontal overlap support, 38.2% Fibonacci retracement). A breakout below our intermediate support at 1.3469 (horizontal overlap support, 38.2% Fibonacci retracement) will provide the bearish acceleration to our take profit level. Ichimoku cloud is also showing signs of bearish pressure, in line with our bearish bias.
RSI (34) is also seeing a bearish exit and we can expect a corresponding drop in price.