Forex Technical Analysis: Trend potential – Sell GBP within 1.3316-1.3271.

GBPUSD – Flat

Sell GBP within 1.3316-1.3271.

Technical observation

GBP has been correcting itself significantly to a daily resistance zone it established around 1.3316-1.3271, and while it is contained below this zone only short positions can be recommended. Wait for a bounce within 1.3316-1.3271 to confirm bearish momentum of price to re-sell GBP with your take profit at 1.2698 and stop loss at 1.3493.In case of a penetration below 1.2698, more bearish price rally towards 1.2080 or further can be expected. Should there be no rejection within 1.3316-1.3271 but a clear penetration above it with a big green candle then wait for a correction to the just broken zone and a bounce within it before you pick long position.

Trade recommendation

Wait for a correction to 1.3316-1.3271 to sell GBP.

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