GBP/USD technical analysis | Nov 12, 2019
The bullish thrust with all candles (7 bullish candles) closed above 3-3 SMA (blue line) makes a ground for Bread & Butter and Double Repo patterns.
Bread and Butter pattern had already completed with leg BC. Then price closed back below 3-3 SMA on Nov 5, which makes a sort of Double Repo. It's not a perfect Double Repo because it has taken almost 10 candles to form it wheres a perfect Double Repo is supposed to be formed within 3-6 candles. Nevertheless, further retracement still seems to be on the table.
Classical target of Double Repo is FIB50.0 of thrust (1.26027 - light green horizontal line) that makes a support cluster with ABCD161.8 and abcd127.2. GBP/USD is very sensitive to any news related to Brexit, so we are not taking this farther target.
Other support is FIB38.2 (1.26991 - light green horizontal line) that almost coincides with ABCD127.2 and abcd100. We are not taking this target either because we want to exit as early as possible especially if very nearer target can give good risk:reward.
We are targeting ABCD100.0 (+2.0 pips & spreads) and had moved our SL to BE already.