GBPUSD is testing major support at 1.3930 (horizontal overlap support, 23.6% Fibonacci retracement). A strong reaction could occur at this level, pushing price up to our next major resistance at 1.3996 (horizontal swing high resistance, 50%, 78.6% Fibonacci retracement, 100% Fibonacci extension). Stochastic (34,5,3) is also seeing a bounce off its ascending support line along with a bullish divergence, a good precursor for a potential rise in price. Trading CFDs on margin carries high risk. Losses can exceed the initial investment so please ensure you fully understand the risks.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.