In the previous trading week price has made a huge push to the upside. It ultimately created an over extended move. The issue surrounding "brexit" also made the British pound weaker. Now here is where the sell off will begin.
Reasons for Sell off:
1.) Price is overextended
2.) Price broke through the monthly trendline (and now time for a re-test)
3.) Price also made a new high, and now it is time to test the previous high
4.) Using the break and retest method, when drawing the Fibonacci you are looking for price to retrace at least to the 50. fib level.
5.) on the 4h time frame you can see price momentum beginning to slow down.
Reasons for Sell off:
1.) Price is overextended
2.) Price broke through the monthly trendline (and now time for a re-test)
3.) Price also made a new high, and now it is time to test the previous high
4.) Using the break and retest method, when drawing the Fibonacci you are looking for price to retrace at least to the 50. fib level.
5.) on the 4h time frame you can see price momentum beginning to slow down.