Hello dear traders! Let me share the trading idea for GBP/USD with you.
The broad-based advance of the US dollar has certainly impacted on the pound sterling.
In fact, the sterling has been losing ground since early May. The British pound has lost all gains of the late April. It broke the trendline at D1 with target levels which coincide with the lows of April.
I suggest that we consider the idea of GDP/USD declining to the two target levels: 1.22400 and 1.21500.
The idea rests on the following principle. Let's continue working out yesterday's move inside the three-wave ABC structure which is seen on the chart above.
The prefect sell zone will be a retracement zone at near 1.23500.
The extent of the price move could be from 1,000 to 2,000 pips.
Good luck in trading! Make sure you manage your risks!
