Forex Technical Analysis: Trend potential – We are neutral


Technical observation

Yesterday GBP declined towards the supportive level 1.2057 and bounced slightly above it before picking bullish momentum. The upwards movement is a correction to the resistance zone 1.2320-1.2308 and I expect a rejection of price within it to pick short positions with my take profit at 1.2957 and stop-loss at 1.2405. Should there be a clear break below the level 1.2057, wait for a correction to it before you continue short towards 1.1932, however, if price rises above the zone I mentioned earlier, I expect a correction to the same zone and a rejection within it followed by a surge towards the resistance level 1.2617.

Trade recommendation

Remain flat.

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