The upward momentum in GBP/USD was broken due to yesterday's selling pressure. This is why the pair is now trading under the previous day's low, with an obvious support-resistance level at 1.21350. Just behind it are buyers' stop orders.
This, along with the three-wave pattern (ABC) in pound, opens the opportunity for traders to enter the market by selling from the 50% retracement level. Set stop-loss at 1.23200 or after the false breakdown of 1.2222, then exit upon the breakdown of 1.21332.
This trading idea is based on the "Price Action" and "Stop Hunting" methods.
Good luck and have a nice day! Don't forget to control the risks.
