GBPUSD above strong support, prepare to buy
Buy above 1.3309. Stop loss at 1.3202. Take profit at 1.3522.
Reason for the trading strategy (technically):
Price is seeing strong support above 1.3309 (Fibonacci retracement, Fibonacci extension, horizontal overlap support) and 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 also seeing the descending line pose as intermediate resistance. Only a clean break above would trigger a stronger bullish call.
Reason for the trading strategy (technically):
Price is seeing strong support above 1.3309 (Fibonacci retracement, Fibonacci extension, horizontal overlap support) and 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 also seeing the descending line pose as intermediate resistance. Only a clean break above would trigger a stronger bullish call.