Forex Technical Analysis: Trend potential – Remain flat.


Technical observation

GBP is retracing to the resistance zone it established at 1.1833-1.1855 and my expectation is a loss of this upwards movement within the same zone followed by a surge to the lower side. As it is on the 4 hour chart above, I would recommend that you remain neutral and wait for a correction to the zone indicated above the sell a bounce within it with your take profit at 1.1428 and stop-loss at 1.1962, a further momentum to the lower side can be expected in case of a clear break below the level 1.1428, On the other hand, you can expect bullish movements of price towards the level 1.2278 in case of a clear break above the zone 1.1833-1.1855.

Trade recommendation

Remain flat.

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