Chart of the week GBPUSD

GBPUSD is breaking below the strong long-term downside resistance level

GBPUSD is breaking below the strong long-term downside resistance level 1.2600 as it is visible on a monthly chart. This break is opening a possible further downside extension for a key breakout 1.2000 level. As long as the pair is below the 1.2700 level look for more downside.

 

 

On a daily chart, we can see a retest of the previously broken resistance 1.2650-1.2700 zone. This is providing an excellent trading opportunity with a good risk to reward short entry. You can place a short trade even at the market with the stop loss above the 1.2670  level targeting 1.2370 level and even trailing the profit further downside into 1.2168. ARMAT trading system is indicating a potential 200 pips of profit.

 

 

We have used the combination of the top-down trading analysis to get these key levels explained in the charts.

Happy trading! (click on the chart to enlarge it)

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