Forex Technical Analysis: Trend potential – Wait


Technical observation

GBP declined to the supportive zone it establishes at 1.2084-1.2071 but could not break below it, instead it bounced within the same zone and since then it has been trading with an increasing bullish bias. My expectation is a further surge to the key level 1.2316 followed by a rejection at it to pick short positions with my take profit at 1.2084 and stop-loss at 1.2404. Should there be a clear break below the zone 1.2084-1.2071, I expect the value of the pair above to decline towards the supportive level 1.1775 or even lower. As long as price is sustained below the level 1.2084, I expect it to ascend towards the key level 1.2596.

Trade recommendation

Wait for a correction to the level 1.2316 to sell GBP.

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