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Long

GBP USD Fibonacci Retracement Trade Play

FX:GBPUSD   British Pound / U.S. Dollar
After the recent GDP growth disappointment, I believe the market has priced in the news adequately. A correction is due on the sell-off, which is confirmed by the technical indicators in the chart. Most obvious is the support trendline analysis, coupled with the Fibonacci level, which combines to give solid support. However, the bounce is expected to be short-lived. RSI and moving averages have bearish indications, implying a strong downtrend is underway. An Elliot Wave analysis confirms this, we are seeing the beginning of wave B of the Elliot Correction. We look to the next Fibonacci level for potential resistance, which I think will also coincide with the moving average lines to provide solid resistance. Finally, the bounce will end and we will observe the final wave of the correction (wave C) potentially up to the Fibonacci 0.5 level, which happens to also be a support trendline . Given the major support/resistance levels line up with each other, I believe this is a good trade to take, with potential stop losses at your appropriate risk-level.
Hi all, please comment if you have any opinions or ideas regarding this strategy, I'm open to discussion and further analysis! :)
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