Forex Technical Analysis: Trend potential – Remain flat temporarily


Technical observation

GBP is trading with an increasing bullish bias slightly below the resistance zone 1.2318-1.2302 and I expect a further rise to the same zone followed by a rejection of price within it to pick sell positions with my take profit at the level 1.1778 and stop-loss at 1.2429. In case of a clear penetration below the supportive level 1.1778 with a big red candle, I expect this pair to plummet further after a correction of price to the broken line and a bounce at it, however if there is a clear break above the zone 1.2318-1.2302, I expect the value of GBP to ascend towards the resistance level 1.2655 or even higher to the level 1.3194.

Trade recommendation

Remain flat temporarily.

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