GBP/USD: Selling on strength, best RR from 1.3120 up to 1.3180

The sterling transitioned into a fresh down-cycle last week. The breakout of support at 1.3280 came on increasing volume, solid velocity and quite some magnitude, running for over 70 pips since the breakout occurred.

The best risk-reward opportunities appear to be on joining the downtrend from the 50% fibonnaci retracement up to the 3rd test of the trendline. The 3rd touch tends to see sizeable number of limit orders to cap advancements all else equal.

The pre-conditions for the hourly structure to remain conducive to play shorts include the price kept below the trendline and/or absence of higher highs and higher lows as per our market structure criteria (visit our medium page to get the insights).

The next target to the downside has a projection of 1.2920 as per the 100% fib projection extension.