GBPUSD potential bearish breakout

Price might potentially break out of the channel with a downwards movement towards the 1st Support in line with the 76.4% Fibonacci extension. Our bearish bias is further supported by price holding below the 200 period EMA and a bearish divergence is spotted in the stochastic indicator.

Trading Recommendation

Entry: 1.87543

Reason for Entry:

88% Fibonacci retracement and previous swing low

Take Profit: 1.91504

Reason for Take Profit:

100% Fibonacci extension and previous swing high

Stop Loss: 1.86454

Reason for Stop Loss:

127.2% Fibonacci retracement