After completing a 100% extension drop, GBP/USD jumped immediately in that level and it appears to have bottomed.
We expect a retracement of at least 38% around 1.4061 level, thus we are long.
Long 1.4040 or market price- Our entry price is 1.40348
Stop Loss: Today’s low= 1.4007
Targets as indicated in the chart below.
*If position is in the money or Target 1 is hit, use trailing stops to protect profits and lower risk.
**For more ambitious traders, you can try to hold the position for GBPUSD to test the trendline around 1.4192 level