Forex Technical Analysis: Trend potential – We are bearish towards 1.1797


Technical observation

GBP retraced to a resistance zone it established at 1.2191-1.2209 then bounced within it and is currently trading with an increasing bearish bias. As long as the value of GBP is sustained below the zone I have mentioned above i expect a continuation of this downwards movement and if you picked short positions within the zone indicated above after a bounce, I recommend that you remain in the trade with your take profit at 1.1797 and stop-loss at 1.2301. If there is a clear break below the level 1.1797 with a big red candle, wait for a pullback to the broken line before you continue short towards the key levels 1.1336 and 1.0884.

Trade recommendation

Remain bearish with your take profit at 1.1790.

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