GBPUSD reacting below key resistance, drop incoming!

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GBPUSD is reacting below key graphical resistance. A short term drop below 1st resistance at 1.42200 towards descending trendline support and 1st support at 1.41397 could be likely. 1st support also falls in line with 61.8% Fibonacci retracement level. Stochastic is testing resistance where price pulled lower in the past.

Trading Recommendation

Entry: 1.42200

Reason for Entry:

Graphical swing high

Take Profit: 1.41397

Reason for Take Profit:

61.8% Fibonacci retracement and descending trendline support

Stop Loss: 1.42542

Reason for Stop Loss:

-27.2% Fibonacci retracement

The material has been provided by InstaForex Company - www.instaforex.com

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