Forex Technical Analysis: Trend potential – Expecting a surge to 1.1991


Technical observation

GBP is trading with an increasing bearish bias below the resistance zone it established at 1.2317-1.2301 and as long price is sustained below the same zone I expect a further momentum to the lower side. If you picked short positions within the zone I have indicated above remain in the trade with your take profit at 1.1991 and stop-loss at 1.2413. If price declines to the level 1.1991 and bounce at it, wait for another correction to the zone 1.2317-1.2301 to re-sell GBP, however, in case of a clear breakout above the zone I mentioned earlier, I expect the value of GBP to surge towards the key level 1.2599 or even higher.

Trade recommendation

Remain short with your take profit at 1.1991.

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