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! :)
EN English (UK)
EN English
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out