GBPUSD: Support trend line confirms bearish GBP
The support trend line since early May has acted as a pivot point for trend reversals. The price seems to have just recently bounced off the resistance level at the 0.382 retracement level, and the strong resistance level at 1.5688 which has been tested multiple times by the market. Therefore, I predict that the price will continue to fall until reaching the support trend line at 1.5482 in the next few days. The candlestick pattern also seems to confirm my prediction that short would be the best option. If the price does reach the trend line once again, and does not break the resistance level at 1.5688, then a reversal of direction may occur.
In case my prediction turns out to be incorrect, a stop loss at 1.5703 would be most suitable as then the price would've broken the resistance level at 1.5688.
Stop loss: 1.5703
Take profit: 1.5482
Risk/Reward Ratio: 1.76
In case my prediction turns out to be incorrect, a stop loss at 1.5703 would be most suitable as then the price would've broken the resistance level at 1.5688.
Stop loss: 1.5703
Take profit: 1.5482
Risk/Reward Ratio: 1.76
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