Forex Technical Analysis: Trend potential – We are bearish towards 1.1405


Technical observation

GBP retraced to the resistance zone 1.1758-1.1739 and it bounced within it as I has predicted previously, price then declined steadily and right now it is still trading with an increasing bearish bias slightly above the supportive level 1.1405. My expectation is a further surge towards the level I have mentioned above followed by either a rejection of price at it or a clear break below it with a big red candle. If you are currently holding short positions with the pair above, remain in the trade with your take profit at 1.1405 and stop-loss at 1.1852, I can only recommend bullish positions in case of a break above the zone 1.1758-1.1739.

Trade recommendation

Remain short with your take profit at 1.1405.

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