Daily Trading Signal
* GBP/USD at 1.2488, with strong resistance at 1.2508, in an overbought zone and sellers triggered a corrective move.
* If the pair drops below 1.2475, the potential to reach an important level at 1.2450 with a 38.2% Fibonacci retracement mark.
* Candles closing above 1.2450 could provide an opportunity to go long with targets at 1.2500 and 1.2540 levels.
On Tuesday, the GBP/USD currency pair was trading at the 1.2488 level and facing strong resistance around 1.2508.
As the pair was already in the overbought zone and facing resistance around the 1.2500 level, sellers triggered a corrective move and completed a 23.6% Fibonacci retracement at the 1.2475 level.
If the pair continues to drop below this level, it could potentially reach 1.2450, which is an important level to focus on, as it is also extended by a 38.2% Fibonacci retracement mark.
If candles close above the 1.2450 level, it may provide an opportunity to go long with targets at 1.2500 and 1.2540 levels.
GBP/USD - Trade Idea
Entry Price – Buy Above 1.24546
Stop Loss – 1.24128
Take Profit – 1.25065
Risk to Reward – 1 : 1.2
Profit & Loss Per Standard Lot = +$519/ -$418
Profit & Loss Per Micro Lot = +$51/ -$41
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