61.8% Fibo retracement on the GBP/USD

The Pound has come back to the upside versus the US Dollar for today and it has retraced to the 61.8% Fibo as seen on the one hour chart. The retracement is from the run that it made from the high on Wednesday at the 1.5162 to yesterday’s low at the 1.4688 level. The Fibonacci retracements of 61.8% and 76.4% could act as very important support or resistance levels. In this case, the GBP/USD has retraced to the 61.8% and it is trying to bounce to the downside from there. A good trading technique to use, is to place the stop loss above the 76.4%, because on occasions the price tends to go and visit that level before turning back.