As I expected, the GBP/USD pair traded higher and met my second yesterday’s target at the price of 1.3085. GBP/USD lost its bullish trend and went into the overbought condition on the Stochastic oscillator, which is a warning for buyers at this stage. The Pitchfork median line served as good resistance, and GBP found sellers from that point. The trend is still bullish, but we need patience to wait for a downward correction. Support levels are set at the price of 1.3000 and at the price of 1.2975.
Trading recommendations for today: We closed GBP/USD on both long positions and took profit of 200 pips. We are now waiting for the GBP/USD pair to correct into our support levels (1.300-1.2975) and if there is a good rejection, we will be able to buy again.
The material has been provided by InstaForex Company – www.instaforex.com