GBPUSD starting to breakout, keep an eye out on this trade!
Buy above 1.3309. Stop loss at 1.3202. Take profit at 1.3522.
Reason for the trading strategy (technically):
Price have been testing our descending resistance line multiple times yesterday and is seeing strong support above 1.3309 (Fibonacci retracement, Fibonacci extension, horizontal overlap support). We expect to see a strong bounce above this level to push price up to at least 1.3522 resistance (Fibonacci extension, horizontal swing high resistance). We have to watch out for the descending line which would pose as intermediate resistance to this move.
Stochastic (55,3,1) is starting to make a bullish exit from its descending resistance-turned-support line and this could trigger a strong corresponding rise up in price.
Reason for the trading strategy (technically):
Price have been testing our descending resistance line multiple times yesterday and is seeing strong support above 1.3309 (Fibonacci retracement, Fibonacci extension, horizontal overlap support). We expect to see a strong bounce above this level to push price up to at least 1.3522 resistance (Fibonacci extension, horizontal swing high resistance). We have to watch out for the descending line which would pose as intermediate resistance to this move.
Stochastic (55,3,1) is starting to make a bullish exit from its descending resistance-turned-support line and this could trigger a strong corresponding rise up in price.