Forex Technical Analysis: Trend potential – Expecting a rally to 1.2381


Technical observation

GBP retraced to the supportive zone 1.2187-1.2175 but did break below it, instead it bounced within the zone and since then it has been trading with an increasing bullish bias. I expect a continuation of this upwards movement to the key level 1.2381 followed by a either a rejection at it or a clear break above it with a big green candle. If you are currently holding bullish positions, remain in the trade with your take profit at 1.2381 and stop-loss at 1.2090, should there be a clear break above the level 1.2381, wait for a correction to it before you continue long. As it is on the chart above, I can only recommend short positions below the zone 1.2187-1.2175.

Trade recommendation

Remain long with your take profit at 1.2381.

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