Forex Technical Analysis: Trend potential – We are short towards 1.1410


Technical observation

Since it bounced within the zone 1.2636-1.2579, GBP has been declining steadily and as long as it is sustained below the same zone I expect a continuation of this bearish movement towards the supportive level 1.1410 followed by either a clear break below it or a rejection at it. If you are currently holding short positions on the weekly chart above, I would recommend that you remain in the trade with your take profit at 1.1410 and stop-loss at 1.2973. Should there be a clear penetration below the level 1.1410 with a big red candle, you can expect the value of GBP to plummet further after a correction to the broken line.

Trade recommendation

Remain short with your take profit at 1.1410.

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