Forex Technical Analysis: Trend potential – Short around (1.4072-1.4023)

GBPUSD – Flat

Short around (1.4072-1.4023)

Technical observation

Yesterday, GBPUSD rose towards the key resistance zone (1.4072-1.4023) and the green candle closed around it.today the pair is still rallying below the zone and I don’t expect a breakout above the zone but a possible rejection of price within or around the zone and a decline in price towards 1.3786 or even lower to 1.3304 and 1.3049,right now I would enter short position with my first target at 1.3786 and the next at 1.3304 and my stop loss at 1.4190.If there’s a clear breach above (1.4072-1.4023) with a big green candle then that would be the best time to long GBP after a retracement to the zone.

Technical levels

Resistance levels

R1.1.3953

R2.1.4082

R3.1.4306

Pivot

1.3864

Support levels

S1.1.373

S2.1.3636

S3.1.3412

Trade signal

Short GBP around (1.4072-1.4023) with your take profit at 1.3786 and stop loss at 1.4190

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