FX.co ★ GBP/USD Is Testing Its Support, Prepare For A Bounce

GBP/USD is approaching testing its support area at 1.3991 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap support) where we expect to see a bounce, pushing the price up all the way to its resistance at 1.4182 (50% Fibonacci retracement, horizontal overlap resistance). We do have to be cautious of the intermediate resistance at 1.4082 (23.6% Fibonacci retracement, horizontal overlap support).

Stochastic (55, 5, 3) is testing its support at 3.11% where we expect to see a corresponding bounce.

Buy above 1.3991. Stop loss at 1.3925. Take profit at 1.4182.