GBP/USD Setting for a Bounce Higher Ahead of Tusday Earning Report
Looking at the daily chart, we can see that GBP/USD has been trading sideways around current trading level (just above the 200 day moving average/ red line). Considering the sharp selloff we had from prior highs down to the 200 day moving average level, it is reasonable to assume that sooner rather than later, we shall see price bouncing higher. In order to find 2 Take Profit targets for this trade, we use the Fibonacci retracement tool to measure latest move from prior highs to current low at 1.34627; the retracement levels show a potential price bounce to the 1.3678 level and 1.3812 level. Traders interested in entering this trade at current price level can protect themselves with a stop loss order under recent lows 1.346. Traders getting into this trade should watch for Tuesday news as the UK will report earnings figure, the expectations are for a 3.1% growth rate and GBP/USD bulls will look for the UK to beat expectations.