$GBPUSD top down trading technical analysis
In this article, we will share top-down trading technical analysis for the GBPUSD.
On the monthly GBPUSD chart, we can see that the pair is rejected by the previous strong horizontal downside resistance, now turned support, 1.4060 level. The pullback from a bottom 1.2000 level, reached the 1.4060 and is reversing lower again from here. This reversal is significant and could even be a third the most extensive wave down from a pre-Brexit 1.7500 high.
The weekly GBPUSD chart is revealing a downside Pitchfork channel in the full swing. Break below the 100 SMA 1.3070 level on the weekly chart is opening a further downside extension into the 1.2000 level. Possible resistance could be measured by the Fibonacci retracement levels indicated on chart 76.4% 1.2524 and 88.6% 1.2227, but they are not so strong.
By using our top-down trading technical analysis we have identified the key levels which will be your triggers for a trading strategy in this instrument upon an important downside break of the strong resistance. Preferred entry is short with the stop loss above the rectangle marked support level 1.2950–1.3000 zone. Take profit target is 1.2520 level at least. You should use any kind of bounces from here for the short trade entries.
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