GBPUSD Broke Out Of Support, Sell On Strength!
Sell below 1.3914. Stop Loss at 1.3998. Take Profit at 1.3742.
Reason for the trading strategy:
Price broke out of our support-turned-resistance at 1.3914 (horizontal overlap resistance, breakout level). We expect a strong reaction to occur below this level, pushing price down to our major support at 1.3742 (horizontal swing low support, 23.6% Fibonacci retracement, 100% Fibonacci extension). Ichimoku cloud is also showing signs of bearish pressure, in line with our bearish view.
RSI (34) is seeing a bearish exit, a good precursor for a potential drop in price.
Reason for the trading strategy:
Price broke out of our support-turned-resistance at 1.3914 (horizontal overlap resistance, breakout level). We expect a strong reaction to occur below this level, pushing price down to our major support at 1.3742 (horizontal swing low support, 23.6% Fibonacci retracement, 100% Fibonacci extension). Ichimoku cloud is also showing signs of bearish pressure, in line with our bearish view.
RSI (34) is seeing a bearish exit, a good precursor for a potential drop in price.