GBPUSD approaching major resistance, potential drop!

GBPUSD is approaching our first major resistance at 1.4200 (76.4% Fibonacci retracement, 61.8%, 100% Fibonacci extension). A strong reaction might occur at this level pushing price down to our major support at 1.3997 (horizontal overlap support, 38.2%, 61.8% Fibonacci retracement, 61.8% Fibonacci extension) which coincides with our short term ascending support line.

Stochastic (89,5,3) is also approaching our major resistance at 97% and we might see a corresponding drop in price should it react off this level.

Losses can exceed the initial investment so please ensure you fully understand the risks Trading CFDs on margin carries high risk.

Trade active:

Reacted nicely off our first major resistance, well on our way to our major support! Hope you guys manage to get in on this trade