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Short-term correction after overbought

170
🔔🔔🔔 GBP/USD news:

➡️ GBP/USD is holding modest bids near the 1.3200 mark during early European trading on Tuesday. Recent UK data revealed that the unemployment rate remained steady at 4% for the three months to February, while average earnings came in weaker than expected, putting downside pressure on the British pound.

➡️ After gaining nearly 1% on Friday and closing the previous week up 1.5%, GBP/USD continued its upward momentum on Monday, trading above the 1.3150 level. Although the pair’s short-term technical outlook suggests overbought conditions, investors may be hesitant to anticipate a significant pullback due to widespread selling pressure on the U.S. dollars (USD).
TheU.S. Dollar Index, which measures the greenback’s performance against a basket of six major currencies, dropped 3% last week as escalating U.S.-China trade fears of a potential U.S. economic downturn.

Personal opinion:
➡️ The uptrend is still strong while the USD is being sold.

➡️ However, the overbought zone of RSI should also be taken seriously, this will be the reaction zone of the selling side.

➡️ Analysis based on important resistance - support zones and Fibonacci combined with RSI to come up with a suitable strategy

Plan:
🔆Price Zone Setup:

👉Sell GBP/USD 1.3265 - 1.3275
❌SL: 1.3310| ✅TP: 1.3210 - 1.3160 ​​

FM wishes you a successful trading day 💰💰💰
交易進行
GBP/USD rose to 1.3251 and fell to 1.3205
not matching the 1.3265 sell zone
Cancel the 1.3265 sell strategy. As this zone has reduced the sell value

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