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MEX_Exchange
Apr 23, 2018 2:23 AM

GBPUSD Is Testing Its Support, Prepare For A Bounce Short

British Pound/U.S. DollarFXCM

Description

Buy above 1.3991. Stop loss at 1.3925. Take profit at 1.4182.
Reason for the trading strategy (technically):
GBPUSD is approaching testing its support area at 1.3991 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap support) where we expect to see a bounce, pushing price up all the way to its resistance at 1.4182 (50% Fibonacci retracement, horizontal overlap resistance). We do have to be cautious of the intermediate resistance at 1.4082 (23.6% Fibonacci retracement, horizontal overlap support).
Stochastic (55, 5, 3) is testing its support at 3.11% where we expect to see a corresponding bounce.
Comments
kyanmarco
you're trading setup is "long" and not "short".
MEX_Exchange
@kyanmarco, thank you! my mistake! :)
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