GBP/USD - Huge Reversal Coming, Here's Why

Hello Traders! Welcome to my post, today we are looking at GBP/USD and we have identified the following confluences to support this high-probability setup:

A very significant Fibonacci zone, in this zone we have a major 38.2% and a minor 78.6% Fibonacci retracement. Major 138.2 Fibonacci extension, and a minor 2.272 and 1.272 Fibonacci extension all lining up in the same area. In the same area we also have a trendline drawn from the weekly chart which is approaching its 3rd touch and a counter-trendline drawn from the weekly chart which has proven its technical significance with multiple touches as support and resistance. Lastly, we have a 5 wave structure which is coming to an end which is projected to complete in the significant fib zone and to confirm the 5 wave structure we have formed strong bearish divergence between waves 3 and 5.

Stop Loss: 1.32200
Targets: 1.28000, 1.27000, 1.26000, 1.24500

Risk to Reward Ratio: 4.3


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Keep in mind that the analysis provided is not 100% accurate and that you can never be certain with the markets. This information given is not financial advice, always do your own research.
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