The GBP/USD pair shot down towards our profit target before bouncing up once again. We now prepare to sell as price is approaching major resistance at 1.3044 (Fibonacci extension, horizontal swing high resistance) and we expect a major reaction from this level for a drop to at least 1.2935 (Fibonacci retracement, Elliott wave theory) which needs to be broken to confirm a major drop.
Stochastic (34,5,3) is testing 96% resistance and the price is definitely in strongly overbought territory.
Sell below 1.3044. Set stop loss at 1.3081 and take profit at 1.2935.
