GBP/USD reaches key support, what can we do now

After Mark Carney's statement, the pound sank against its main competitors.

The GBP/USD reached a key level where the main diagonal support of the middle-term upward channel, horizontal support, SMA 200 and FIBO 50 are crossed. For now, the price remains above this level, though only a few pips. What are the opportunities ahead?

if the price remain above this level means that the selloff is likely to end and after a proper price action signal we can look for new long positions, such as the SL should be at a considerable distance from our entrance to avoid stop hunting.

The second option is a break below the level. To confirm, the price should keep a few bars below the level and test the breakthrough, and then the price has to go in the downward direction. Break below this level is very likely to trigger many SL orders, which will most likely lead to "pounding" the price until the next bundle of orders arrives. Our short entry should be precised. We must wait for a break, test and a suitable price action signal. Then we put the stop over the area of ​​already resistance (former support)

Read more:

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