Forex Technical Analysis: Trend potential – Expecting a correction to the zone 1.3401-1.3338


Technical observation

The value of the pair on the weekly chart above is trading with an increasing bullish bias above the level 1.2159 and I expect it to close the same. This upwards movement is a pullback to the resistance zone 1.3401-1.3338 and I anticipate a further surge to the same zone followed by a bounce within it to pick short positions. My advice, remain flat and wait for a correction to the zone indicated above then sell a bounce within it with your take profit at 1.2159 and stop-loss at 1.3751. As it is on the weekly chart above, I can only recommend bullish positions in case of a clear breakout above the resistance zone 1.3401-1.3338.

Trade recommendation

Wait for a correction to the zone 1.3401-1.3338 to sell GBP.

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