GBPUSD profit target reached, prepare to sell again
Sell below 1.3044. Stop loss at 1.3081. Take profit at 1.2935.
Reason for the trading strategy (technically):
Price shot down towards our profit target before bouncing up once again. We now prepare to sell as price is approaching major resistance at 1.3044 (Fibonacci extension, horizontal swing high resistance) and we expect a major reaction off this level for a drop to at least 1.2935 (Fibonacci retracement, Elliott wave theory) which needs to be broken to confirm a major drop.
Stochastic (34,5,3) is testing 96% resistance and price is definitely in strongly overbought territory.
Reason for the trading strategy (technically):
Price shot down towards our profit target before bouncing up once again. We now prepare to sell as price is approaching major resistance at 1.3044 (Fibonacci extension, horizontal swing high resistance) and we expect a major reaction off this level for a drop to at least 1.2935 (Fibonacci retracement, Elliott wave theory) which needs to be broken to confirm a major drop.
Stochastic (34,5,3) is testing 96% resistance and price is definitely in strongly overbought territory.