GBPUSD H4 | Potential bounce off from support level?

Looking at the H4 chart, price of the has dropped from resistance to our buy entry at 1.2342. This level is a strong overlap support and that lines with the 78.6% Fibonacci retracement level. Our take profit level will be at 1.2498, which is just before the swing high resistance level.

To manage potential risks, we will place our stop loss at 1.2270, which is just slightly below the swing low support level



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