Forex Technical Analysis: Trend potential – Wait for a correction to the zone 1.4781-1.4158


Technical observation

GBP bounced at a supportive level it established at 1.1646 and since then it had been trading with an increasing bullish bias and this week I expect a further surge to the upper side. The anticipated upwards movement of price is a pullback to the resistance zone 1.4781-1.4158 and I expect a bounce within it to pick short positions with my take profit at 1.1646 and stop-loss at 1.5023. If price clearly breaks below the level 1.1646, I expect it to decline further after a correction and a rejection at the broken line, however should there be a penetration above the zone 1.4781-1.4158, I expect a rally towards the key level 1.6882.

Trade recommendation

Wait for a correction to the zone 1.4781-1.4158 to sell GBP.

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