GBP/USD dropping perfectly from selling area, remain bearish

The price has dropped perfectly from our major resistance at 1.2531 (Fibonacci retracement, Fibonacci extension, horizontal overlap resistance, and descending resistance) and we expect to see a further drop to at least 1.2378 support (Fibonacci retracement, horizontal swing low support). Our conviction on this trade improves once it breaks the ascending support line that is holding it up.

Stochastic (34,5,3) is seeing strong resistance below the 94% level and has made a bearish exit as a pre-signal that the price would correspondingly break the ascending support line and make a push down.

Sell below 1.2531. Stop loss is at 1.2621. Take profit is at 1.2378.


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