Trade of The Day – GBP/USD

Facts:

GBPUSD bounced off the resistance area near 1.3260 The pair is trading below 100-period moving average from H1 interval

Recommendation:

Trade: Short position on GBPUSD at market price Target: 1.3190, 1.3170 Stop: 1.3283

Opinion:

GBP/USD has been trading in a downward trend recently. Looking at the H1 interval, we can see that the recent upward correction move was stopped at key resistance. The area near 1.3260 is a result of previous local low, as well as 100.0% Fibonacci Expansion measurement, which means that the A, and B are the same size. According to the Elliot Wawe Theory, it may be the end of the local ABC correction, which supports the downward scenario.

In addition, GBPUSD dropped below 100 – period moving average which further confirms bearish sentiment. We recommend going short GBPUSD at market price with two targets: 1.3190 and 1.3170 We also recommend placing a stop loss at 1.3283.

Source: xStation5